Ofgem price cap shows govt can cut bills in April

EMBARGO: Immediate Release

Responding to this morning's Ofgem announcement that the energy price cap has been reduced to £3,280 for the average household,  Liberal Democrat Leader Ed Davey MP said:

"This confirms the government could easily afford to reduce energy bills in April instead of increasing them.

"People are already struggling to afford their rents and mortgages, food shopping and bills.

"It is unforgivable that the Conservatives are choosing to push desperate families over the edge by hiking their energy bills by another £500.

"Ministers must listen to our calls for an energy rescue package to save families and businesses from this cost of living cliff-edge, funded through a proper windfall tax.

ENDS

Notes to Editor

Reported here. 

Liberal Democrat Energy Rescue Package

• Instead of the Conservatives’ plan to hike the energy price guarantee by £500, the Liberal Democrats want to scrap the bill hike and reduce the average energy bill to £1,971 - the level it was last April. This would save the average household an estimated £400 on their energy bills over the next 12 months.
• For the least well-off households, the Liberal Democrats want extra targeted support, including doubling the Warm Homes Discount to £300.
• The party is also calling on the government to U-turn on its plans to slash energy bill support for businesses, schools and hospitals by 85%, and instead extend current levels of support for another six months.
• The Liberal Democrat plan would mostly be funded through money already budgeted for energy support, but now unspent due to falling energy prices.
• Additional funds would be raised by a proper windfall tax on the record profits of oil and gas companies, including scrapping the fossil fuel investment loophole and raising the rate of the windfall tax from 35% to 40%.
• This could raise at least £15 billion more than the government’s current Energy Profits Levy.