I have received a large number of emails about the rise in energy bills.
Some have asked for a windfall tax on the oil companies to generate revenue that can then be used to reduce consumer bills. I addressed what I consider to be the folly of a windfall tax in this column last week.
The Chancellor announced a £9 billion package in February to provide some relief through council tax rebates and a scheme for spreading costs over the next two years. This will help but it represents only a fraction of the increased bills that we all face.
Energy prices are determined by supply and demand in international markets and are beyond the control of any government. Growth in international demand relative to the supplies available was already driving prices up as economies recovered from the Covid pandemic. The impact of war in Ukraine and the sanctions that we imposed on Russia sent the prices of oil and gas through the roof. As I said in the Commons, when we impose sanctions on Russia, we are also imposing them on ourselves. The only consolation is the privations that we will endure are as nothing, compared to the suffering of the people of Ukraine.There are a number of sources of assistance for people worried about their energy bills or falling into debt. Smart Energy GB has worked with the fuel poverty charity National Energy Action to provide simple and helpful advice which can be found on their websites. Many other organisations also provide advice and support, such as Age UK and the British Gas Energy Trust.
People who prepay for their energy might benefit from upgrading to a smart prepayment meter which provide new ways to top up online, over the phone, by text, or by smart phone apps. The accurate and near real-time data allows energy suppliers support prepay customers more easily, by offering tailored support assistance as emergency payment applied directly to the meter, or advice on managing energy costs.
In the end there is no way of getting over the fact that we have to pay for the energy that we use to heat our homes, and we need to reconcile ourselves to using less of it.When I was a child we didn’t have central heating and we’d often be fascinated on a cold morning by the frosty patterns on the inside of the window panes. My grandparents didn’t have a fridge because they didn’t need one, there was a room that was easily kept cold enough. We all wore warmer clothes.
These days may come again