UK energy secretary says only clean power can help get bills down

The UK’s only chance to reduce electricity bills is to bet on clean power that is produced locally, Secretary of State for Energy Security and Net Zero, Ed Miliband, said on Friday after energy regulator Ofgem announced an upcoming energy price cap increase.

In a press statement, energy secretary Miliband blamed the rise in the price cap on “the failed energy policy”, which the new government inherited.

“The only solution to get bills down and greater energy independence is the government’s mission for clean, homegrown power. That's why we have hit the ground running, lifting the onshore wind ban, consenting unprecedented amounts of solar power and setting the largest ever budget for our renewables auction,” Miliband stated.

Earlier in the day, Ofgem announced that in the period October-December 2024, it will raise the energy price cap for a typical household by 10% to GBP 1,717 (USD 2,254/EUR 2,028). As a result, the average household electricity and gas bill will go up by GBP 149 per year.

According to Miliband, the new government intends to reform the regulator “to make it a strong consumer champion,” while also working to make standing charges fairer and introducing a proper Warm Homes Plan to save families money.

Frankie Mayo, an analyst at independent energy think-tank Ember, shared the opinion of the energy secretary on clean power and warned consumers that prices may stay at this higher level into 2025.

“Energy costs are rising because gas prices are now highly unreliable. This is an issue of international markets but impacts households across the country. Gas prices have been rising across the summer and remain higher than pre-crisis levels - building more wind and solar and supporting home insulation will reduce the need to import expensive gas. The UK will continue to lack security against price spikes until the country permanently cuts its fossil fuel dependency,” Mayo commented.

(GBP 1.0 = USD 1.313/EUR 1.181)

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