Energy bills could rise by 50% unless government intervenes, industry warns

Energy bills could soar as high as 50% as the UK faces a ‘national crisis’ over soaring gas and electricity prices, the industry has warned this week.

Energy UK has urged the government to intervene and cut the cost of bills as dozens of energy companies are forced out of business by rising wholesale prices.

Supplier EDF has also said the situation is ‘critical’ as customers, already seeing record bills, are hit with more rises due to surging prices.

Emma Pinchbeck, the chief executive of Energy UK, discussed the issue on BBC Radio 4’s Today programme on Thursday, where she said rising prices are now starting to hurt the economy.

Pixabay

She said: “We’ve had record-breaking gas prices since September, and over the last couple of weeks prices have spiked again. They are at levels that, frankly, we have not seen before.

“It’s looking pretty serious for the spring. Domestic energy bills are going to go up 45-50%.”

Pinchbeck added that a number of European governments are asking energy-intensive commercial users to turn down factories in order to make savings and ease the knock-on impact.

They have also reduced taxes and other levies, something that could save close to £200 a year on an average bill here in the UK.

She said: “We are asking our Treasury to intervene as other governments have. When it comes to bills, it’s worth remembering that less than a fifth is in the control of suppliers.

“The price is now so high that this affects the whole of the economy. So does the Treasury need to do more? They have been reluctant to intervene so far in the bits that are within their control.”

Nigel Pocklington, the chief executive of Good Energy, also weighed into the issue, describing it as a ‘national crisis’.

He told the Financial Times: “Wholesale gas and power prices have increased to unprecedented levels over the last three weeks, creating an extremely difficult operating environment for every business in the industry.”