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Energy bosses have urged the chancellor to provide new financial support to customers and businesses as the war in Ukraine threatens to deepen the crisis which has engulfed the industry during the last six months.
Sky News has seen a letter from Energy UK to Rishi Sunak in which it laments the use of energy “as a geopolitical weapon” and expresses deep concerns about repeated spikes in prices.
The trade association – which counts the likes of British Gas-owner Centrica among its members – said it was “not concerned about UK security of supply” because of Britain’s low dependence upon Russian gas imports.
However, it warned Mr Sunak that he may need “to act to provide extra measures to protect the UK economy and support households and businesses with the costs of energy”.
Last month, the Treasury unveiled a £9bn support package to help households cope with a surge in gas and electricity prices, but that has already been judged insufficient by analysts in the wake of subsequent wholesale costs.
“Volatility in the international gas market in 2021 had already seen wholesale gas price spikes of up to 500%, 29 UK retail energy suppliers exit the market, and an energy bill rise this April which we estimate will put an additional 1 million UK households into fuel poverty,” said the letter from Emma Pinchbeck, Energy UK’s chief executive.
“Following the invasion of the Ukraine, we have seen further spikes in prices, as the markets respond to uncertainties, and industry and governments around Europe seek to move away from gas dependency at speed.”
Ms Pinchbeck said the industry was working with charities and consumer groups, spending millions of pounds to support vulnerable customers, and working…
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Source : skynews
