Energy Secretary Miatta Fahnbulleh acknowledged on Wednesday that political decisions to support renewable energy are contributing to the current rise in household energy bills, alongside international conflicts. Households are currently facing the highest energy bills in three years, with further increases anticipated this winter.
In a radio interview, Fahnbulleh responded to a question about whether political choices to subsidize renewables, rather than solely the war in Iran, were to blame for soaring prices. "No, so it is both, we have to be honest," she stated. She emphasized the necessity of upgrading Britain's energy infrastructure, asserting, "Irrespective of the transition on Net Zero, we've got to upgrade our grid because that's the thing that ensures that the system is operating."
Despite these remarks, Fahnbulleh also stated in a separate interview that the government's green strategy is not responsible for adding hundreds of pounds to bills due to investment in wind and solar power. "It's simply not true," she told Sky News. "When I talk about clean power it is, yes, good for the environment, but it's absolutely critical to deliver bills that are more affordable because it breaks that link to global fossil fuel markets."
The energy price cap, set by the watchdog Ofgem, will see the average annual dual fuel bill rise from October to £1,723. This increase follows a 13 percent rise in the price cap from July to September. Neil Kenward, Ofgem's director for markets, noted that "High international gas prices are continuing to drive energy costs in the UK." He added, "We welcome the Government's intervention to remove VAT from electricity bills, without which customers would have faced even higher costs this winter."
The Prime Minister's plan to remove VAT from electricity bills, set to take effect in October, is projected to save households £45 annually, a figure that will be surpassed by the Ofgem-mandated increase in the price cap.
Experts forecast another potential 9 percent jump in January, which could increase the price cap by an additional £149, reaching £1,872.
Opposition figures have criticized the government's approach. Tory energy spokesman Claire Coutinho stated, "Labour promised to cut energy bills by £300, but since the election, they have gone up by nearly £400 instead." Opposition leader Kemi Badenoch added, "Energy bills are going up because Labour is ducking tough decisions."
