ADE: ‘Price cap increase after price cap increase is not the answer’

Ofgem CEO Jonathan Brearley has today told MPs that the energy regulator will be increasing the energy price cap from its current limit of £1,971 to new heights of around £2,800 in October this year. The price cap previously rose from £1,277 a year for an average household to the current level of £1,971 in April 2022. Lily Frencham, CEO of the ADE, said:The energy price crisis we are all facing needs immediate and decisive action, but implementing price cap increase after price cap increase is not the answer. What the government needs to do is deliver a clear and implementable plan to lower bills permanently, with a particular focus on clean heat and energy efficiency measures. Deployment of low carbon heat networks and energy efficiency upgrades need to be rapidly scaled-up to protect consumers from future price fluctuations and to permanently reduce energy demand. How many price cap rises will there be? They are a sticking plaster on a serious wound, and can’t just go on forever – the Government must create a much more sustainable and fairer energy system, where it goes harder and faster towards providing the public with comfortable, affordable homes and protecting them from fuel poverty.Notes to editors: About Heat Networks  A heat network scheme comprises a network of insulated pipes used to deliver heat from the point of generation, in the form of hot water or steam, to an end user. Heat networks provide the means to transport heat efficiently. They can be supplied with heat from a diverse range of sources including power stations, waste-to-energy facilities, biomass boilers and CHP plants, gas-fired CHP units, heat pumps, electric boilers and even solar thermal arrays. Click here for more information about district heating and here for case studies.  About Energy Efficiency  Energy efficiency in buildings reduces demand for the heating and power of the indoor space through a combination of measures, such as insulation, draught proofing, and LED lighting. The cheapest, safest and most secure form of energy is the energy we do not use. That is why energy efficiency must be allowed to compete on equal terms with new supply capacity. Energy efficiency means the construction of fewer new generating plants and reduced network infrastructure investment combined with greater resilience and lower carbon emissions.  About the ADE  The ADE is bringing energy together to advocate on the priorities for the UK in achieving net zero. We have over 150 members organisations and together we are driving the decarbonisation of heat, championing the role of industry in the green transition and pushing for UK homes, places of work and public services to be energy efficient and smart. Only by getting users engaged and investing in energy efficiency, low carbon heat and providing smart flexibility will be the UK truly be able to decarbonise its energy system. For this to happen, energy must work for the user. At the ADE, we believe that an energy system designed around the user’s needs, enabling the right technology choice in the right place, serves everyone better.   For further information please contact: Jonny Bairstow Head of External Affairs Association for Decentralised Energy Tel: +44 (0) 7305 049584 jonny.bairstow@theade.co.uk