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UK Government Must Fix Unfair Pegging of Renewables to Soaring Gas Prices
ACTION COULD LOWER ENERGY BILLS BY UP TO £18 BILLION A YEAR
Local MP Richard Thomson is backing calls for the UK Government to stop the “unfair” pegging of renewables to soaring gas prices, which could lower energy bills by up to £18 billion per year.
Currently, unit prices for all forms of energy are pegged to gas prices, which are rising dramatically in the cost-of-living crisis. This means that consumers using renewable energy, which is cheaper and more environmentally friendly, are being unfairly impacted by the soaring gas prices.
Decoupling the price of retail energy, including renewables, from gas prices could save businesses £11 billion and households up to £250 a year, according to Energy UK.
Commenting, Richard Thomson MP said:
“Under this Westminster Government, the cost-of-living crisis is growing worse by the day. Inflation is at a record high and rising, food banks have seen record use, and warm banks are being set up across the UK for those who cannot afford to heat their homes.
“One way the UK Government can ease the pressure on households and businesses is by decoupling the price of retail energy from expensive gas bills. Right now, the unit prices for all forms of energy are pegged to gas prices, meaning that those using renewable energy to power or heat their home, which is much cheaper, are still being adversely affected by rising gas prices.
“The UK Government must urgently fix this unfair system. Doing so could lower energy bills by up to £18 billion a year, and benefit both businesses and households, according to Energy UK.
“Beyond that, it must also address the unjust system that sees consumers in Scotland pay higher standing charges. It is ridiculous that this is even the case, and shows that only with independence and ridding ourselves of Westminster governments will consumers in Scotland ever get a fair deal.”
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