Home Business News Brits warned to expect ‘two or three years worth of very high energy bills’ as this is not a ‘one off’

Brits warned to expect ‘two or three years worth of very high energy bills’ as this is not a ‘one off’

by LLB Finance Reporter
3rd Feb 22 3:43 pm

The head of the Confederation of British Industry has warned on Thursday that Brits should brace for high energy bills for the next “two or three years.”

The Director-General of the CBI told Sky News that Brits need to be warned the soaring cost of energy bills are not a “one off.”

Tony Danker told Sky News, “If the trails are to be believed the Chancellor is going to take some action to smooth this cliff-edge of rising energy bills and that’s good news.

“So first and foremost, I think the government taking action is good news.

“We hear that actually, the method they may choose to deal with this is to put loans on the books of energy companies.

“I’m not sure that’s the right way forward, but let’s find out when the detail comes.”

Danker continued, “I think my real concern and I think everybody’s real concern is that this rise in gas prices in energy bills is not just going to be a one-off right.

“We are probably looking at two or three years worth of very high energy bills and whilst our economy is growing at the moment coming back from the crisis, the economy is set to really fall in terms of growth over the next two or three years.

“So I’m afraid we may be talking on this programme about energy prices for two or three years.

“Today, it’s great that we’re tackling you know, the Chancellor, I hope will grasp the nettle.”

“But this could be an issue for us for the next few years,” the CBI chief added.

“And my question is really whether or not the economy is going to grow fast enough after this year for everybody to have the wage growth they need to cope with higher bills.”

This comes as the energy regulator Ofgem increased their price cap by 54% which will affect millions of households across the UK.

Jonathan Brearley, chief executive of Ofgem, said, “We know this rise will be extremely worrying for many people, especially those who are struggling to make ends meet, and Ofgem will ensure energy companies support their customers in any way they can.

“The energy market has faced a huge challenge due to the unprecedented increase in global gas prices, a once in a 30-year event, and Ofgem’s role as energy regulator is to ensure that, under the price cap, energy companies can only charge a fair price based on the true cost of supplying electricity and gas.

“Ofgem is working to stabilise the market and over the longer term to diversify our sources of energy which will help protect customers from similar price shocks in the future.”

The Prime Minister had promised Brits that once the UK has left the Bloc there will be cheaper gas bills after Brexit.

Boris Johnson did promise that household bills will be cheaper after Brexit and said this several times during the 2016 referendum campaign.

Brits who voted for Brexit argued that energy bills would be cut by around £2bn a year as it would allow the government to scrap the VAT on fuel bills.

When the UK was in the European Union the rules banned member states from cutting VAT below 5%.

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