Home Business News The ‘energy crisis is over’ and households told ‘prices are stable now’

The ‘energy crisis is over’ and households told ‘prices are stable now’

by LLB staff reporter
30th Jun 23 10:21 am

The owner of British Gas has said that energy bills will remain high and the worst of the “energy crisis is over.”

Centrica warned that despite the fall in energy prices they will remain at almost double the levels seen before the Russian invasion in Ukraine which was the catalyst that sparked the crisis.

Chris O’Shea, chief executive of energy giant Centrica told BBC Radio 4’s Today programme, “I think the first act of the crisis is over.

“I think what we’ve got to remember is the energy prices had more than doubled before Russia invaded Ukraine.

“Prices are back down to pre-invasion levels but they are 2.5 times the long-run average, and that’s really driven by supply and demand.”

“I think there is a danger that we get complacent because last winter was OK and because prices are stable now.”

Adam Scorer, chief executive of the charity National Energy Action, said: “Despite falls in retail prices from July, many of the people we help are still struggling.

“As of tomorrow, two-thirds of households across the UK will no longer benefit from any assistance to offset the impacts of the energy crisis and Ofgem’s price cap will offer limited protection to these households.”

Which? Energy editor Emily Seymour said: “While the new price cap will see typical bills drop by around £500, energy bills will still be almost double the amount they were before the energy crisis began – which will be unaffordable for some households.

“If you are concerned about struggling to pay higher bills, there is help available. Speak to your energy provider about a payment plan you can afford and check to see if you qualify for any government schemes.”

Seymour added: “Fixed deals are starting to return to the market for existing customers of some suppliers. We wouldn’t recommend fixing anything higher than the unit rates in your current deal or for longer than a year.

“If you are offered a deal, then it’s really important to check the tariff’s exit fees in case you want to leave that deal early if the price cap comes down.”

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