British Gas hasn’t asked for a bailout – we don’t want one & we oppose bailouts
HOUSEHOLDS up and down the country are understandably worried about the prospect of big increases in their energy bills from April.
Customers could very well see Ofgem agree a £700-a-year increase in the Energy Price Cap, possibly followed by another £200 in October.
Energy suppliers have to pass on higher wholesale costs to survive.
But at British Gas we are working hard with the Government to find a way to protect families from the full force of the price hikes.
This doesn’t mean that we are looking for a bailout.
There are reports that some energy companies want a £20billion handout to keep household bills down.
Not British Gas.
We haven’t asked for a bailout, we don’t want a bailout and we oppose any bailouts.
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Our advice to the Government is to try to help those customers who are already struggling to make ends meet, not to worry about helping energy companies’ balance sheets.
Ultimately, any decision has to be taken by ministers — and there is a range of options which can be temporary or permanent.
Suspending VAT on energy bills could shave £100 off the typical bill.
A more targeted option would be to support those who need help the most by making a contribution to their energy bill through a scheme administered by the Department for Work and Pensions.
Another way forward would be to strip the environmental and social levies out of energy bills and then funding “green” programmes through general taxation instead.
Overnight, this would reduce annual bills by £170.
It would also be fairer.
Funding environmental costs through the bill means every customer pays the same amount, regardless of how rich or poor they are.
Whatever the Government decides, we have to use this moment to look longer-term to try to ensure the industry isn’t in this position again.
As a responsible supplier, we have worked hard to “hedge”, to buy gas and electricity in advance to protect our customers from the steepest increases.
Everything we do is to reduce the cost for our customers as much as we can.
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We have to think about protecting customers now — and into the future.
They must be the priority.
