Price cap: ‘The next Prime Minister will need to act swiftly to prevent lasting damage’

Ofgem has announced that it will be increasing the energy price cap from the current level of £1,971, which was set in April, to £3,549 in October.Lily Frencham, CEO of the ADE, said:“Ofgem's announcement today, and projections for 2023, are truly frightening and continue to underline the need for more support and decisive action. Although some measures have been rolled out, we are still yet to see a clear plan to truly lower bills in both the short and long term. The next Prime Minister will need to act swiftly to prevent lasting damage to the energy industry and people’s lives.“Current policy is not hitting the mark, with unaffordable increases to the price cap and repeat calls to offer rebates to shore up the system, when we need to be giving suppliers and consumers some stability and long-term confidence. The next Government has the opportunity to unlock massive amounts of private investment for energy efficiency upgrades and low carbon heat networks – fairer and more sustainable solutions that will protect consumers from future price fluctuations and permanently reduce energy demand.”Notes to editors:About Heat NetworksA 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 EfficiencyEnergy 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 ADEThe 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:George DibleyCommunications and Public Affairs OfficerAssociation for Decentralised EnergyTel: 07817851529george.dibley@theade.co.uk