Energy industry calls for creation of state-backed crisis fund to avoid huge increases in household bills

The energy industry has pressured the government to end its silence on skyrocketing bills, calling for a crisis fund to block looming huge increases.
Chancellor Nadhim Zahawi urged to pass the idea of a "deficit tariff system", to allow the pain to be spread over 10 to 15 years, in a letter from Energy UK group.
He argues that the fund backed by the state would allow customers to repay the cost through a surcharge on bills or through a levy - potentially freezing the price cap for two years.
Labour, who have called for such a freeze, called the letter of evidence "of a consensus across the country, including in the energy industry, that urgent action is needed".
However, the plan, launched for the first time earlier this year, is likely to face the same objection senior Tories raised against the Labor Party proposal, namely that it would create a mountain of debt of up to £50billion.
Recommended< img src="https://static .independent.co.uk/2022/08/09/17/GettyImages-1242156607.jpg?quality=75&width=230&auto=webp" alt="Boris Johnson's own moral failings diminished all around it" height="56" width="82" layout="responsive" class="i-amphtml-layout-responsive i-amphtml-layout-size-defined" i-amphtml-layout="responsive"/ >Boris Johnson's own moral failings diminished all around him< p>Boris Johnson has refused to get involved in what Labor calls the 'national emergency' of soaring facts. res of energy, insisting that it is his successor's business next month.
Liz Truss and Rishi Sunak have both been criticized for not making plans to Curbing the rises, the former - the favorite to reach No. 10 - has backed poorly targeted tax cuts in exchange for what it calls "handouts".
The Treasury is dr offering options to help households that will be presented to the new Prime Minister once Mr Johnson leaves Downing Street on September 5.
The new price cap - which will be announced on Friday next week - is expected to reach £3 582 from early October and then to £4,200 from January.
However, Energy UK, whose members include EDF Energy, Ovo and National Grid, acknowledges that it would take at least up to early next year to set up the crisis fund.
Therefore, he wants ministers to provide the 'urgent' support needed. ire this winter by extending the existing support package announced by then Chancellor Mr Sunak in May.
< p>These payments will cut £400 off all household bills for a period of six months from October, a sum that should be increased, according to the organization.
Then he said: "Government guaranteed loans could be used to reduce bills throughout 2023 by covering the rising cost of wholesale energy for suppliers and allowing these to be spre announced over a much longer period of 10 to 15 years instead."
Energy UK, also wants a panel of energy experts to work out ways to cut bills and for the government to consider a dedicated energy department.
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Politics Aug 19, 2022 0 68 Add to Reading List

Energy industry calls for creation of state-backed crisis fund to avoid huge increases in household bills

The energy industry has pressured the government to end its silence on skyrocketing bills, calling for a crisis fund to block looming huge increases.

Chancellor Nadhim Zahawi urged to pass the idea of a "deficit tariff system", to allow the pain to be spread over 10 to 15 years, in a letter from Energy UK group.

He argues that the fund backed by the state would allow customers to repay the cost through a surcharge on bills or through a levy - potentially freezing the price cap for two years.

Labour, who have called for such a freeze, called the letter of evidence "of a consensus across the country, including in the energy industry, that urgent action is needed".

However, the plan, launched for the first time earlier this year, is likely to face the same objection senior Tories raised against the Labor Party proposal, namely that it would create a mountain of debt of up to £50billion.

Recommended< img src="https://static .independent.co.uk/2022/08/09/17/GettyImages-1242156607.jpg?quality=75&width=230&auto=webp" alt="Boris Johnson's own moral failings diminished all around it" height="56" width="82" layout="responsive" class="i-amphtml-layout-responsive i-amphtml-layout-size-defined" i-amphtml-layout="responsive"/ >Boris Johnson's own moral failings diminished all around him< p>Boris Johnson has refused to get involved in what Labor calls the 'national emergency' of soaring facts. res of energy, insisting that it is his successor's business next month.

Liz Truss and Rishi Sunak have both been criticized for not making plans to Curbing the rises, the former - the favorite to reach No. 10 - has backed poorly targeted tax cuts in exchange for what it calls "handouts".

The Treasury is dr offering options to help households that will be presented to the new Prime Minister once Mr Johnson leaves Downing Street on September 5.

The new price cap - which will be announced on Friday next week - is expected to reach £3 582 from early October and then to £4,200 from January.

However, Energy UK, whose members include EDF Energy, Ovo and National Grid, acknowledges that it would take at least up to early next year to set up the crisis fund.

Therefore, he wants ministers to provide the 'urgent' support needed. ire this winter by extending the existing support package announced by then Chancellor Mr Sunak in May.

< p>These payments will cut £400 off all household bills for a period of six months from October, a sum that should be increased, according to the organization.

Then he said: "Government guaranteed loans could be used to reduce bills throughout 2023 by covering the rising cost of wholesale energy for suppliers and allowing these to be spre announced over a much longer period of 10 to 15 years instead."

Energy UK, also wants a panel of energy experts to work out ways to cut bills and for the government to consider a dedicated energy department.

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