Posted: Thu 13th Oct 2022

Ofgem chief: “Everyone should think about cutting energy use …. there are huge challenges ahead”

News and Info from Deeside, Flintshire, North Wales
This article is old - Published: Thursday, Oct 13th, 2022

The UK’s energy regulator has advised households to cut gas and electricity use “where possible” to help reduce bills and help “security of supply.”

During a speech at the Energy UK conference today, Ofgem’s chief executive, Jonathan Brearley said, “there are huge challenges ahead.”

He said: “It will be a challenging winter, which will need a collaborative response across government, industry, and the regulator, to support all consumers, particularly the most vulnerable, as best we can.”

Brearley said: “This has been quite a year – I know this industry, and most importantly our customers have been through difficult times.”

“Unprecedented is a word too often used for energy in 2022, but I genuinely cannot think of a time that produced such great challenges.”

“Wholesale gas and electricity costs are at an all-time high, hitting families and businesses…”

“… and we are now heading into winter, in the middle of a major European land war where Russia is using energy as a geopolitical weapon.”

“None of us [in this room] can control these events.”

The Ofgem boss said he welcomes the UK government’s Energy Price Guarantee and Energy Bills Support Scheme, “which will provide much needed relief to millions of consumers and businesses.”

He warned: “These measures may make it tempting to feel under less pressure than before.”

“However, it is important to remember that the Energy Price Guarantee still means that a typical household will be paying around double what they were a year ago: £2,500 rather than the £1,277 level of last October.”

“We really do need to be clear that this isn’t the time for complacency.”

Brearley said Ofgem, industry, and government are going to need to work together to ‘make sure we are protecting customers’ interests in what is inevitably going to be another challenging winter.”

“In the first instance, I would urge customers who are struggling to contact their supplier for help and advice. We have been clear with suppliers that they must take their obligations very seriously.”

He added: “..equally, all of us should be thinking about how to reduce our energy use where possible.”

“This is not only the most direct way of reducing our bills. It directly helps with security of supply, contributes to decarbonisation, and saves money for the public finances.”

Media coverage has concentrated on the worse-case scenario..

On security of supply, Brearley said the overall picture for Britain “remains favourable. We are in a stronger position than many European countries.”

“National Grid Gas and ESO believe that they will be able to meet demand in a typical winter, and in most scenarios we expect the system to be robust.” He said.

“However, we should be under no illusion that this winter is likely to be a difficult environment – and we cannot at any time, particularly this winter, eliminate all risk.”

He said: “The fact that European gas pipeline infrastructure has been attacked, shows how the war in Ukraine has fundamentally changed the energy situation in Europe.”

“We are making extensive preparations for a wide range of scenarios.”

“I understand why the media coverage has concentrated on the worse-case scenario preparations.”

“To be clear, we do not think a supply emergency is likely.” Brearley said.

Ofgem said it will soon launch a campaign to explain the support available, how to reduce energy consumption, and what customers should expect from their providers.

Liz Truss is to expand a public information campaign to save energy this winter despite rejecting Jacob Rees-Mogg’s plans over Government concerns they were too “nanny state”, reports PA.

The Prime Minister said on Wednesday that the Energy Secretary is working on a plan to advise people and businesses how to “use energy more efficiently”.

Government sources had previously ruled out a public information plan amid reports Downing Street was blocking a £15 million campaign proposed by Mr Rees-Mogg. Downing Street now says plans from the Department for Business, Energy and Industrial Strategy (Beis) will be incorporated into an existing scheme.

 

 

 

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