‘Reform energy levies’ says South Cambs MP as ‘awful April’ arrives

Liberal Democrat MP for South Cambridgeshire Pippa Heylings has called for a consultation process on how to make electricity cheaper as the latest price cap hike sees bills reach an average £1,849 a year.

The third consecutive increase to Ofgem’s price cap took effect yesterday (1 April). It sees the bill of a typical household paying by direct debit rise 6.4 per cent, an increase of £111 a year or £9.25 a month after it went up by 10 per cent in October and another 1.2 per cent rise in January.

This is 9.4 per cent or £159 higher than this time last year but £531 or 22 per cent lower than at the height of the energy crisis at the start of 2023.

Four million energy customers have moved to a fixed tariff since Ofgem’s last price cap announcement in November, taking the total to 11 million, meaning they will not be affected by the increase.

This was the largest movement of customers coming off the price cap and on to a fixed deal since the energy crisis, the regulator said.

Adam Scorer, chief executive of fuel poverty charity National Energy Action, said: “Energy bills rising for a third time in a row is another blow for the millions of households struggling with the cost of energy and other essentials.

“A low-income household spending £1,849 a year or more on energy is not affordable.”

Ben Gallizzi, energy spokesman at switching site Uswitch.com, said: “Switching is still the best way to lock in lower rates.”

But the South Cambs MP’s approach, rather than urging the 22 million homes still currently covered by the price cap to consider fixing their prices, is to ensure the cost of electricity is reduced.

Ms Heylings, the energy security and net zero spokeswoman for the Liberal Democrats, said: “We call on the government to urgently consult on reforming energy levies to make electricity cheaper.

“This could help save hundreds of pounds a year, protect families and businesses from the volatility of fossil fuel prices under the control of authoritarian regimes, and get us back on track with our climate targets.”

Minister for Energy Consumers Miatta Fahnbulleh said the solution is “to get off the rollercoaster of fossil fuel markets controlled by dictators and petrostates and replace that with clean homegrown power that we control”.

The news comes in what has been termed ‘awful April’ - the start of the new financial year has seen rises in electricity, gas, water and council taxes.