NEA comments on Ofgem’s increase of level of safeguard tariff

Peter Smith, Director of Policy and Research at NEA said: “It is disappointing that Ofgem have decided to increase prices for the most vulnerable consumers. Ofgem have blamed these unwelcome increases on wholesale prices. Whilst this decision may reflect the underlying costs of supplying energy, these sharp rises will badly affect vulnerable people who most struggle to afford this essential service. Whilst the true impacts are unlikely to be truly felt until the warm weather is over, it is bound to cause immediate stress and anguish to the people that most need safeguarding from higher bills.

“The UK Government and the regulator have a key role in moderating UK households’ exposure to these market forces. This must include reducing our dependency on imported fuels which also negatively impacts the UK’s trade balance. This can only be achieved by prioritising energy efficiency. It is now clearer than ever that the Government needs to add to its efforts within the ECO scheme and make domestic energy efficiency a national infrastructure priority as recommended by the National Infrastructure Commission, leveraging treasury funds to ensure that homes are fit for purpose in a world of ever increasing energy costs.”

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