The REA represents around 500 UK companies & organisations working in renewables and clean tech.

Hutchings’ career includes working at Gemserv, the energy services provider, within Whitehall departments, and with the European Commission, leading climate and environment programmes, including policies to support Britain’s renewables market.  At WWF, the conservation NGO, he was director of advocacy, focusing on improving public policy and environmental governance.

Hutchings also chairs the Green Purposes Company, set up by the government to safeguard the green mission of the Green Investment Bank, following its 2017 sale to Macquarie, the global infrastructure investor.

His immediate priority will be to press the incoming Government to put the energy transition and net zero front and centre of its legislative programme.

In its Manifesto for Government, the REA has urged all UK political parties to promote and commit to policies that support sustainable energy growth, low carbon innovation, and the country’s legally binding net zero carbon emissions targets (see the REA’s Manifesto for Government.

Prior to taking over the chief executive role at the REA, Trevor Hutchings was Partner for Sustainability at international consultants BIP.   His career has been shaped across the public, private and NGO sectors in multiple roles supporting clean energy development, net zero, the environment and climate action.

Trevor Hutchings said: “I take up my role at the REA as the country goes to the polls, and we reach an inflexion point in the journey to a sustainable, low carbon future.

“Net zero is within our grasp and the actions taken by the next administration will determine whether we get the job done.   The businesses that make up the UK clean energy and technology industries – many of whom are our members – have the innovation, skills and expertise to cement the UK’s position as climate leader.”

“But the next Government must take vital steps in providing the policy and fiscal regimes that encourage, rather than deter, investment.  This is crucial in not only addressing the pernicious effects of carbon emissions but also reducing energy bills and providing domestic energy security.”

“While there is a moral imperative to emissions reduction, it is also an enormous opportunity for economic growth and international competitiveness.

“By 2035, jobs in British renewable energy could reach 210,000, while its contribution to the UK economy could double to £46bn. But there’s still much to be done to ensure that clean & green is at the heart of the country’s industrial growth strategy.  We must make sure that UK businesses are not shut out of the low carbon race by policies that fail to compete with the significant investment in clean technology from the US, Europe and China.”

REA chair Martin Wright said: “Trevor’s deep-rooted commitment to the environment and sustainability, combined with his career experience, will be invaluable to the REA.  The UK’s pathway towards net zero has reached yet another critical moment with a new Government soon to be elected. The REA, under Trevor’s leadership, will do everything to ensure that Government, across every department, delivers on its net zero commitments and that it fosters a business environment that can accelerate the growth of the UK renewable and clean tech sectors.”

Martin Wright added: “We are hugely grateful for Nina’s leadership over the past decade.  She strengthened the REA’s voice and influence in government, fostered greater collaboration within the energy industry and during her time as Chief Executive widened the breadth of REA’s membership to more than 500 companies.  We wish her well in the next stage of her career.”

Dr Nina Skorupska said: “I am thrilled that Trevor is succeeding me.  We have achieved so much in the past decade and under his stewardship, the REA will continue to have a major influence within government and an effective voice for its members. I wish Trevor the very best in the future and thank the REA team, past and present, the REA Board and all of the REA’s members for their friendship and the support given to me over the past decade.”

Dr Skorupska is joining the Electricity System Operator and National Grid Distribution as an advisor.  She will retain her non-executive directorship at Royal BAM Group, the construction and energy services company, and her place on the board of Transport for London.

In 2016, she received a CBE for her services to the UK renewable energy sector and for promoting diversity in the energy industry.

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Working with Lewes-based prize-winning co-operative Community Energy South (CES), the money from UK Power Networks will help as many as 20 community organisations & charities with grants of at least £50,000 in support of bill-payers in peril of falling behind in the nation’s transition to Net Zero.

UKPN believes energy groups including co-operatives play a key role in supporting vulnerable customers. This work will put boots on the ground, helping pay for local jobs for local people, towards a goal of reaching 20,000 people and conducting over 1,200 in-person home visits.

An award-winning not-for-profit consultancy providing mentoring to speed growth in the community energy sector, Community Energy South (CES) has been awarded funds to enlist and support the participating groups in delivering the work. This partnership will be crucial in ensuring the right support is established in the right places across London, the East and South East of England.

Six community energy groups are already on board and working on plans to recruit and expand their energy advice services. More groups will be coming online for the second phase starting in September.

Suleman Alli, UKPN’s director of finance & customer service, said: “We’re extremely proud to be able to support the impactful work of community energy groups across the areas we serve. We hope this funding boost will make a meaningful difference to those in our community and provide our customers with support and guidance to ensure no one is left behind in the transition to Net Zero.”

CES will provide fully funded bespoke training for new recruits to become ‘energy champions’, now a sought-after career opportunity within the community energy sector.

One energy champion already working in the area said: “I enjoy visiting homes and meeting people and being able to help them with ideas on how they can improve their home and spend less money – and help the environment too. It’s a win win! The training gave me the knowledge and confidence to be able to go out to people’s homes and talk to them about saving energy. The support from the leaders and wider group has been brilliant for when something different crops up.”

CES chief executive Ollie Pendered said: “This is a groundbreaking moment for the community energy sector.

“The intrinsic value of all the hard work by thousands of volunteers across the country has been recognised, and through this campaign up to 20 community energy groups will have the opportunity to receive funding to create local job opportunities and deliver their energy saving campaigns within their communities. This is an extraordinary development and one we thank UK Power Networks for enabling.”

CES has previously worked with UKPN on their Energy Smart Communities  social venture, enabling infrastructure development to leave a lasting legacy which builds more resilient communities.

With a showcase project in the capital’s Leicester Square theatreland, Energy Smart Communities looks at innovative ways to develop community energy projects, raises awareness and provides support for those in fuel poverty and improves knowledge and skills in sustainable living through educational programmes with partners.

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Equivalent to an annual saving of £122, the cut will take effect from July and run for at least three months.  The regulator evidences continuing falls in wholesale gas prices as behind its latest cut.

The cap assumes unchanged standing charges amounting to £334 across both fuels, or £369 for clients settling retrospective bills.  The controversial billing elements endure, with Ofgem resisting campaigners’ calls for them to be merged into consumption costs.

Suppliers may offer a lower standing charge for their default tariffs under the price cap. But to raise the unit rate above that assumed in Ofgem’s price cap, they need to demonstrate that the overall amount charged to consumers is at or below the total price cap.

For the first time, Ofgem today broke down numbers of all Britain’s domestic customers by the way they pay, and the class of tariff on which they are billed.

As of April, around 28 million customers were on Standard Variable Tariffs (SVT). Of these, around 18 million paid by direct debit and 5 million by standard credit, ie. variable bills settled by customer-controlled payments.

That left around of SVT customers feeding pre-payment meters (PPMs). The total of customers on fixed tariffs stands at 4 million, the vast majority of them not on PPMs.

Observers were split as to whether the tariff reduction  would endure beyond September.  Supplier E.ON Next was first to respond, announcing a reduced rate on its tracker E.ON Next Pledge’ tariff which could save switchers a further annualised £50 for customers transferring over from July.

But respected analysts Cornwall Insight said enduring volatility in wholesale prices meant were likely to push tariffs up again this winter.

Principal consultant Craig Lowrey called for politicians and Ofgem to continue on their reform consultations around the cap’s design, and work to secure longer term mechanisms designed to speed up delivery of Net Zero and thus of price stability,

“It is clear the cap in its current form is not going to bring down bills to pre-crisis levels”, Lowrey observed.

“However, while the general election is likely to put a halt to any immediate reforms to household energy bills, parties may use this opportunity to highlight how they intend to approach this challenge in the future”.

From infrastructure advocates Britain Remade, director Sam Richards noted: “The prospect of the Energy Price Cap falling …will deliver relief for households that have had to endure eye-watering energy bills for far too long.

“But energy bills still remain far higher than the long-term average”, Richards went on. “The only way to rapidly bring bills down is to turbocharge the building of clean sources of secure domestic energy.

“Whether it is new nuclear power stations, onshore or offshore wind farms or utility scale solar, the time it takes to build the clean energy infrastructure we need is unnecessary, unjustifiable and is holding Britain back.”

Anti-poverty campaigners Citizens Advice said the cut would give households only ‘small comfort’ in the teeth of continuing cost-of-living pressures.

Its chief executive Dame Clare Moriarty noted;  “The fall in the energy price cap reduces bills slightly, but our data tells us millions have fallen into the red or are unable to cover their essential costs every month.

“People cannot rely on lower energy prices alone to escape the financial issues they’ve been experiencing. That’s why we need better targeted energy bill support for those really struggling to keep the lights on or cook a hot meal.”

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The regulator has given industry players including suppliers & consumer protection bodies until 11 June to comment on its proposals to re-introduce so-called ‘acquisition-only tariffs’.

The consultation follows Ofgem’s  recent measures taken to protect consumers – including via a series of rising or falling caps guiding retail tariffs – from rampaging inflation in energy prices. These have been caused by the world’s emergence from Covid lockdowns, and by the neo-fascist Putin’s rapacious aggression since 2022 towards Ukraine.

So-called ‘acquisition-only’ tariffs, available only to new accounts and not to existing customers, have been banned by Ofgem since April 2022, in an effort to stabilise prices in unstable, post-Covid markets. The ban was first extended until March last year, and then until March 2024.

At the end of February, Ofgem announced it would use its existing powers to extend the ban for a further thirteen months, hinting the latest extension would be the last. At the same time, the regulator said it would sound out industry opinion on whether to remove the ban as early as this October, assuming its retail price caps remain in force.  The alternative is to leave the ban in place until March next year.

Permitting suppliers to re-launch aggressive customer-recruiting tariffs this autumn, is flagged in the consultation as Ofgem’s preference.  An early lift will yield, the body expects will a faster return to competition between suppliers on both price and service factors,

The proposals set out Ofgem’s evaluations of each scenario’s impact on efficient competition in retail energy.

Early response from participants included an argument for retention from Citizens’ Advice, the government’s statutory and independent advisor on fuel poverty.

“Keeping the ban in place is a no-brainer“, Gillian Cooper, CA’s energy director commented.  “It prevents suppliers from locking loyal customers out of their cheapest deals.

“Ofgem must resist pressure to scrap it and ensure suppliers are proactively keeping customers up to date about their cheapest deals.

Removing the ban would unfairly hit older and disabled consumers the hardest, said the CA spokesperson, as they are less likely to switch to a new supplier.

“The ban also protects millions of people with energy debt, whose suppliers can block them from switching, as it means they don’t have to stay on the most expensive tariffs pushing them even further into the red.

At Britain’s biggest supplier Octopus Energy, director of regulation Rachel Fletcher agreed.

 “Allowing suppliers to block their best deals from loyal customers would be a return to the ‘Wild West’ of the energy industry”, she said.

“The loyalty penalty was a key reason 30 energy companies went bust, and ended up adding billions of pounds on to energy bills. Ofgem was right to ban these unsustainable Del Boy tactics, and it would be crazy to bring them back now”, Fletcher went on.

“Instead we need a more transparent, fairer market where suppliers are forced to compete based on innovation, customer service and efficiency. We need lower prices for everyone, not just the few.”

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In a paper out today, the Social Market Foundation – a cross-party think tank – lays out urgent improvements to the Warm Homes Discount (WHD) scheme to ensure it is more generous and reaches more households in need. Despite energy prices being set to fall in April, the government will have to provide further energy bill support  this coming winter, the think tank warns.

The energy price cap remains almost 40% higher than it was in the first half of 2022, and estimates suggest that 6.5 million households across the UK are in fuel poverty, spending over 10% of their income on energy bills. In a recent survey, half of British people said that they have turned the heating off even though it is cold in the house.  That means the coming winter will remain challenging for many families unless the government takes urgent action to improve the energy bill support system, the SMF said.

At present, the government has two schemes to help with energy costs – the WHD and Winter Fuel Payments (WFP) – which both have issues. Both are inadequate, says the think-tank. The WHD offers £150 a year, and the WFP up to £300.

The payments have failed to keep up with inflation or rising energy costs, leaving recipients in some cases up to £90 worse off. One-off cost of living payments have helped, but with these also ending, the current bill support infrastructure needs some updating, the SMF argues.

It claims both support programs are also targeted crudely. While the WHD produces sharp cliff-edges, leaving many just under the eligibility threshold with no support at all, the WFP is too generous with public money, given that it is paid to all pensioners, many of whom do not need help. Around 45% of pensioner households are in the top half of the income distribution.

The SMF proposes replacing the current system with a tiered Warm Homes Discount – such that the households with the highest energy needs will receive the highest level of support, tapering off gradually for households with lower predicted energy needs. The SMF’s proposals mean that an additional 1.4 million additional households could be supported by the WHD, bringing the total to 3.9 million households. Consumer support group Citizens Advice has also called for a tiered WHD, to address the current schemes’ shortcomings.

Whilst this does bring the estimated annual cost of WHD to £1.4 billion  – against its current cost of £374 million -, the SMF recommends phasing out the ineffective WFP currently costing £2 billion, and using some of that public money on the new and improved WHD.

Under SMF’s model, the expanded WHD will also be more generous. It will no longer be a flat rate, instead range from £550 to £250, if aiming for a 15% reduction in energy bills to all households either receiving pension credit or means-tested benefits.

 Sam Robinson, senior researcher at the Social Market Foundation, said: “Although these days temperatures are going up and energy prices are coming down, we should be under no illusion that affording energy bills this winter is going to be easy for many households.

“Millions are already struggling with fuel poverty. It doesn’t have to be this way. With an expanded Warm Homes Discount, funded by lower spending on Winter Fuel Payments, we can achieve a more impactful and more cost-effective approach to energy bill support.”

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As UK energy prices begin to fall – on 1 April the new price cap of £1,690 takes effect, down from £2,382 for the same period last year, – Ofgem makes public changes in its approach to ensure consumers are protected as the pace of change accelerates on Britain’s journey to Net Zero by 2050.

The regulator frames its mission under five priorities:

• Shaping a retail market that works for consumers
• Enabling infrastructure for Net Zero at pace
• Establishing an efficient, fair and flexible energy system
• Advancing decarbonisation through low carbon energy & social schemes
• Strengthening the regulator as an organisation

Last week the National Grid Electricity System Operator (ESO) predicted the nation’s electricity demand could grow by over 50% by 2035, as more sectors such as transport and heating use more electricity.

Ofgem’s strategy re-vamp follows appointment in September of its new chair, Mark McAllister, pictured, formerly the head of nuclear regulator the ONR. New directors have also joined contributing expertise in customer service, engineering, economic regulation, digital services and business.

McAllister said price shocks in recent years surpassed anything he had seen in his 45-year energy career.

“As things start to stabilise, now is the time to shift our focus forward to building a cleaner, more secure and affordable energy system that will help to deliver a net zero future for generations to come, while ensuring we are not susceptible to similar shocks again” he said.

Officials recognise Britain’s need for renewables-friendly infrastructure signal network upgrades delivered at a rate unseen for decades. But the task brings opportunities and benefits for customers, McAllister added.

Centrepiece of the agency’s national drive is the agency’s new Accelerated Strategic Transmission Investment (ASTI) framework, designed to weed out redundant network projects, thus axing years off connection waits afflicting renewables & storage sources, including 50GW of extra offshore wind.   Two projects, including the 2GW Anglo-Scots EGL1 subsea connector, received provisional approval under ASTI this month.

In November Ofgem unveiled too a network of regional energy planning roles, intended to improve local power planning and speeding up roll-out of new infrastructure.

Ofgem has also put in place new consumer standards requiring energy suppliers to be more proactive in identifying and helping customers at risk of struggling with bills and published a major call for input on debt and affordability to consider how to find a lasting solution to the issue.

It is seeking views on reform of the retail price cap, reflecting the role of dynamic and time-off-use tariffing seen as essential to accommodate a more dynamic power market.

McAllister added: “Our intention is to use our vantage point to bring together all parts of the sector, providing constructive challenge and working in partnership to realise the benefits of the new energy system for the whole of society.”

Ofgem CEO Jonathan Brearley added:  “We are now at a pivotal moment as we look ahead to a huge transformation of how we use our energy, how it’s getting to our homes and how it’s created in the first place.  This means potentially a huge range of possibilities for consumers – smarter tariffs, more energy efficient homes and ultimately more affordable bills.

“Getting there will not be easy, but it is necessary and we must ensure we bring the public along with us as we make this transition”.

Alongside its strategy to 2029, the regulator also releases its detailed Forward Work Programme (FWP) covering twelve months ahead.  From next year the FWP will update the longer-term strategy and the progress it has made towards its objectives, adding metrics to assess progress.

Read the Multiyear Strategy here.

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Ofgem defends the price cap as working well since its introduction in 2019, protecting customers from the worst of volatile, post-Ukraine wholesale power markets.  Reformulations have included a temporary ban on acquisition-only tariffs, stopping suppliers from penalising inattentive customers.

Around half of UK homes were covered by the price cap when it launched.  Bills rocketing in consequence of Covid & of Putin’s war in Ukraine have pushed that share to over 90 per cent now.

The watchdog says a power sector increasingly dominated by renewables and smart technologies favouring flexible, time-shifted consumption, are already speeding up changes in home usage behaviours.  Growing numbers of homeowners generating onsite, operating  batteries, charging EVs or using heat pumps more and more call the cap’s present scope into question.

With waves of households set to adopt time-of-use tariffs, the watchdog says devising a universal price cap is getting trickier for policy makers as much as suppliers.

Half hourly settlement set to arrive next year as an option for home consumers will inject yet more variety into how Britain’s residences use electricity, the body recognises.

Ofgem’s discussion paper today on the future of price protection follows D-ESNZ’s call in February for evidence (CFE) on default tariffs.

The regulator’s suggested options for the price cap’s evolution include:

• making it more dynamic, capping time-of-use unit rates to encourage consumer flexibility
• introducing a targeted cap, reflecting factors such as customers’ financial vulnerability
• opting for more market-based protection, such as setting a limit between a supplier’s default tariff and other rates
• capping suppliers’ profit margins, or
• replacing the cap with a ban on acquisition-only tariffs

Today’s consultation ends on 6 May.  Its proposals are part of Ofgem’s wider work to review how the retail market for home energy is set up, ensuring it favours all consumers including those who struggle the most to meet bills which have trebled or worse since Britain emerged in 2021 from Covid.

Last month the watchdog issued its call for input to examine issues around affordability and debt in the energy market.  It is also reviewing 30,000 responses to a call for opinions on standing charges which closed in January.

Ofgem’s director of retail Tim Jarvis said: “While the price cap played an important role in protecting consumers from the loyalty penalty that existed before its introduction, the energy market is changing as we move to Net Zero. We recognise the systems we have in place may need to change too.

“We’re considering how a wide range of future consumers will use and pay for energy, to make sure we develop the right measures that will protect and benefit consumers across the board.  Our aim is ensure the market works for everyone”.

In related assessments, Ofgem will review over the next two years whether its supervising rules need to levelise bad debt charges between direct debit and standard credit customers. Also flagged for review are changes in suppliers’ operating costs and how these are reflected in the price-cap level.

In February D-ESNZ published its own appeal for input, exploring how default tariffs may evolve as the market changes.

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The study, from the University of Sheffield, the UK Energy Research Centre, and Universities of Nottingham, East Anglia and Macedonia in Greece, found that employment status, housing tenure, inability to save, energy prepayment methods, and household composition are indicators of households that may struggle to withstand high energy prices and heat their homes effectively whilst maintaining their financial solvency.

Low energy price resilience (LENRES) is also associated with worse health, disability, and wellbeing outcomes for adults. This is mainly driven by the stresses of falling behind on energy bills.

The recent energy price crisis initiated “epidemic levels” of hardship in the UK, according to the recent Marmot Review.  Recent government figures estimate that 37 per cent of households now spend more than 10 per cent of their residual income on energy, after deducting housing costs, a share three times up, compared to pre-pandemic levels.

Millions of households therefore face energy-related deprivation for the first time, while millions more have become vulnerable to the escalating debt crisis – with energy-related debt rising to record levels (£3.1 billion).

This new indicator is intended to provide the Government with data to identify which households are most likely to struggle with energy affordability and financial solvency, while helping to plan support and interventions for those struggling to keep a warm home.

Dr Andrew Burlinson, from the University of Sheffield’s Department of Economics and UK Energy Research Centre, said: “Our study puts forward a definition and a quantifiable measure of low energy price resilience that can be used to inform policy making aimed at preventing the worst economic, health and wellbeing consequences of high and prolonged energy price events on households in the UK.”

Drawing on a representative sample of households in the UK between 2016 and 2022, LENRES was developed to provide a way for policymakers to look at the channels underpinning low energy price resilience and how LENRES affects key health and wellbeing outcomes for both adults and children who are living in cold homes.

Dr Davillas from the University of Macedonia, said: “Households with adults that are unemployed, retired, struggling to save, or currently on energy prepayment methods are systematically correlated with low energy resilience, and the numbers of these households are increasing over time.”

However, the research found that for children, household low energy resilience was mainly associated with poor life satisfaction. The researchers believe this was because adults try to shield children in the household from the problem, compounding associated wellbeing and mental health issues in the process.

The team say the research will not only help policymakers introduce more targeted energy interventions for those most in need, but help the Government introduce benefits for society as a whole.

Professor Giulietti from Nottingham University Business School, added: “The UK Government has already attempted to mitigate the impact of the crisis with measures such as the universal energy price guarantee, which has allowed for speed of action in the intervention. However this was a temporary measure for most consumers and potentially failed to support the most vulnerable.”

“As price volatility and uncertainty persist, policy interventions in the energy market will need to be better targeted to avoid further detriment to the most vulnerable households. This could include measures targeted at improving supply resilience as well as demand, more specifically individual household resilience in the longer-term.”

Matthew Scott, policy lead for net zero and fuel poverty at Chartered Institute of Housing, said: “This research breaks vital new ground providing a clearer picture of who has been most impacted by soaring energy costs to date, and a way of understanding who is potentially more likely to continue to struggle in the future”.

Matt Copeland, head of policy and public affairs at National Energy Action, said: “Despite significant government support, this prolonged energy crisis has shattered the finances of millions of people in fuel poverty. Energy bill debt has risen to record levels, meaning our figures show 6 million UK households are struggling to meet their ongoing energy costs while being asked to pay for last winter.

“Identifying those households who no longer have any resilience to price shocks is crucial. As high prices continue and with volatile geopolitics impacting energy prices, targeting support to those who most need it is vital.”

The full study is here.

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Ofgem’s raising of the energy price cap enabled British Gas, with 7.5 million domestic customers the nation’s biggest power supplier to homes, to recoup some of the costs of having to sell its output below wholesale prices during the energy crisis.  Centrica puts the costs recovered at £500 million.

The price cap rise, and subsequent increase in British Gas profits, pushed Centrica’s pre-tax profit to £6.5bn for 2023, compared with a loss of £240m a year earlier. The company’s preferred figure, which allows for bespoke adjustments, show profits fell 17% to £2.8bn for the year to December.

Centrica chief executive Chris O’Shea said efforts to recoup costs supported British Gas profits only in the first half of the year, with the division taking a £200m hit in the final six months of 2023.

He defended the remaining profits, which enabled Centrica to pay a final dividend worth £144m to its shareholders.

“I said this before and I want to take this opportunity to say it again: to be sustainable you must make a profit. Which is super important because every consumer in the UK is paying £88 for the failure of other energy suppliers in the last few years. If more companies fail, these costs go on to customer bills.”

The final dividend brings Centrica’s one-off payouts to investors to £217m this year. Centrica said it was also voluntarily putting aside £40m to support customers, on top of the £100m spent in 2023.

By mid-morning, its share price had advanced over 2%, increasing the company’s value to £7,218 billion.

O’Shea said the company’s strong performance was unlikely to last but he was confident shareholders would continue to reap rewards.

“As you would expect, sharply lower commodity prices and reduced volatility will naturally lower earnings in comparison to 2023 as we return to a more normalised environment,” he said.

“Our performance over the past year has reinforced our confidence in delivering against our medium-term sustainable profit ambitions and continuing to create value for shareholders.”

The sharp increase in British Gas profits prompted a backlash from the union Unite, which is calling for the company to be nationalised.

“Centrica is still raking in astonishingly high profits off the back of exorbitant energy bills that are nearly double what they were three years ago, Unite’s general secretary, Sharon Graham, said.

“There is no point beating around the bush: the only way to stop households and businesses being ripped off by the profiteers in our energy supply chain is public ownership. It is an absolutely affordable option that would protect the national interest. Our politicians need to decide whose side they are on and make the right choices.”

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Among 2,000 homes polled for the company, 56% of billpayers fear for their ability to meet bills at unprecedented levels, a rise of 13% on last winter.

With Ofgem ordering a raise this quarter in its energy price cap, domestic bill payers have more than doubled online searches year on year for advice on energy efficiency.  Quarter against quarter,^.web searches rose by 53% .

With typical dual fuel bills now double what they were two years ago, EdF’s research has convinced it to commit £185 million more to efficiency advice and related measures.

EdF is upping by £103million this year’s spending on its ECO and Great British Insulation Schemes.  Improving EPC ratings of an 14,000 homes with new energy saving kit, is at the heart of the initiative.   The supplier calculates savings will amount to between £700 and £800 per year.

Since Christmas 2022, the company’s research tells it 36% of all UK households have invested in at least one bill-saving step. Most popular among householders taking action have been underfloor insulation, installed by 57%, followed by radiator panels, adopted by 53%.

With 77% of households believing that more needs to be done to support vulnerable customers, and a fifth worrying about falling into arrears, EdF says its investment will offer eligible customers living in a home with a low EPC rating a package of free energy-saving measures and heating improvements to help bring down bills permanently and improve their homes EPC rating.

EdF managing director for customers Philippe Commaret commented: “People are concerned about keeping their homes warm in a cost-effective way. Tackling the energy efficiency of people’s homes is the number one way we can help to reduce bills and we’re not choosing to stand still or wait.

“Our extra £103m on the ECO and Great British Insulation Schemes this year which will deliver savings to thousands of vulnerable customers.”

EdF is also launching a new Home Efficiency Hub, a tool where customers can create a free tailored plan to boost home energy efficiency. Links to qualified installers are included. The plan also sets out any grants or funding that may be available, saving customers energy and time, helping them reduce their emissions.

Checks for eligibility can be made here.

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Confirmed in today’s programme of upcoming new laws, the last before premier Rishi Sunak’s administration seeks direct electoral legitimacy for the first time, is an offshore petroleum licensing  bill.

The proposed law will enact the intention of Sunak’s government, as announced after the South Uxbridge by-election in July, to “max out” the North Sea’s potential to yield more planet-heating production and consumption of oil and gas.

This morning’s speech delivered by the monarch, the first given by a king in seventy years, portrayed turning on more offshore taps for hydrocarbons as effective in easing the cost of living crisis and reducing the nation’s exposure to foreign tyrants controlling oil production.

Honouring the tradition of his late mother, Charles, a lifelong environmentalist, adopted a studiously neutral tone of voice when citing a programme of annual grants by his government for new extraction of fossil fuels.

Other environmental advocates were less reticient.

“There is no evidence that the commodities extracted through these new rounds ( – of North Sea oil extraction  -) would be supplied into the UK market, and therefore how they contribute to energy security or lower bills, “ stated the Aldersgate Group, a green-minded gathering of many of Britain’s biggest companies, climate scientists and civil society representatives.

“By contrast, it is clear that domestic production of renewable energy supports security and diversification directly, so we welcome the renewed commitment to attracting investment into renewables and reforming grid connections”, the group’s statement added.

Rachel Solomon Williams, the Aldersgate Group’s executive director, went on; ““It is crucial that the UK Government focuses on delivering on its climate and environmental ambitions in the upcoming parliamentary session”,

The lobbyists for Britain’s fast-expanding green sector called on Sunak’s chancellor Jeremy Hunt in his Autumn Statement later this month to ensure that the UK remained an attractive destination for low-carbon investment.

“Maintaining a priority focus on low carbon generation will be essential for the UK to retain credibility as an international climate leader as we approach COP28”, the Aldersgate statement added.

“Other nations – along with investors – are looking to the UK to deliver a consistent commitment to delivering Net Zero. This would be best served by doubling down on the implementation of existing carbon budget plans.

Sunak’s words, as recited by the monarch this morning before peers and MPs, re-committed the Conservative administration to achieving Net Zero by 2050.

New laws reforming the rights of leaseholders and home renters in England and Wales, an effective ban on children buying cigarettes and vapes, and curbs on public rights to protest were announced today by the monarch on his government’s behalf.

Caroline Lucas, Westminster’s sole Green Party MP, decried Sunak’s fixation on new oil and gas. It was to be introduced, said Lucas, at the expense of a new mass drive promoting home insulation which the country needed much more urgently.

Lucas alleged that energy security secretary Claire Coutinho had admitted drilling for more oil would have no effect in cutting Britons’ energy bills, since most of new North Sea extraction would be sold on international markets.

Responding to the proposed new oil and gas licencing, Sam Richards from pro-growth campaign group Britain Remade, said: “Including new legislation to mandate annual North Sea oil and gas licensing rounds in the King’s Speech is little more than political posturing that is unlikely to increase domestic oil and gas production.

“Rather than wasting time trying to create political dividing lines, the Prime Minister should be going hell for leather to speed up the building of new sources of clean energy.

“Britain hasn’t even got out of the starting blocks when it comes to small modular reactors” said Richards. “While the US has an approved design and SMRs are being built in China and Poland, we don’t even know where these new mini nuclear plants will be allowed to be built”.

“Government urgently needs to spend more time working on getting more new nuclear built, and less time on political games.”

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That’s the forecast of analysts Cornwall Insight, in a latest prediction reflecting the labrynthine global interdependencies of energy economics.

Growing volatility in international wholesale energy markets has already pushed up forecasts for the 2024 UK price cap for home supply, or the Default Tariff Cap, as regulator Ofgem terms it.

The analysis firm says latest predictions place a typical dual fuel consumer’s January energy bill at £1,923 per year, based on Ofgem’s new official yearly usage benchmarks of 2,700 kWh of electricity and 11,500 kWh of gas. A near-negligible rise to £1,929 is foreseen in April 2024.

While already predicted to increase in January, the cap had been expected to fall below the current £1,834 typical bill rate for the rest of 2024, Cornwall notes.

Figure 1: Cornwall Insight’s Default Tariff Cap forecasts using new Typical Domestic Consumption Values (dual fuel, direct debit customer)

Source: Cornwall Insight

Uncertainties such as Israel’s war with Hamas, and the disruptions in Finland and Australia have put paid to those hopes. Since September, forecasts for the cap have nudged up by as much as 6%  Best current forecasts have the price cap remain above the current level at least until the end of the year.

Cornwall notes that Britain’s increasing reliance on internationally sourced liquid gas, as it moves away from Russian supplies, has made it particularly susceptible to flutters in the LNG market.

The ramifications of events in Gaza, which caused production to cease at key Israeli gas fields, saw lower gas output to Egypt where it is processed into LNG, impacting supply and prices. In Australia, strikes have cut production, reducing LNG exports and affecting some of the country’s main assets.

While unrelated to the Gaza conflict, Finland’s Balticconnector experienced interruptions which raised questions about the potential for similar damage elsewhere.  Global wholesale markets have reacted as they rationally should, Cornwall notes, once again pushing up prices.

“The uncertainty over potential disruption going into winter will raise more questions over the supply-demand balance as temperatures start to decline”, in Cornwall Insight’s view.

Dr Craig Lowrey, principal consultant at the respected firm, observed:

“The jump in price cap predictions since September has once again highlighted the vulnerability of UK energy prices – and customer bills – to geopolitical events. The Russian invasion of Ukraine demonstrated there is a delicate balance in the global energy market which can easily be disrupted by unexpected events, it looks as though the current situation is repeating that pattern.

“The government needs to take steps to proactively limit the impact that such situations have on the UK’s energy market, and already stretched households, rather than reacting to events as they occur. Stop-gap measures such as social tariffs and one-off payments are helpful, but they are not a long-term solution”, Lowrey advised.

“While the UK will never be entirely protected from global price increases, reducing the country’s reliance on imported energy and prioritising sustainable, domestically sourced energy will help protect the country from international energy shocks, and work to stabilise prices over the next decade.”

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Elected in 2019 for the East Surrey constituency with a 24,000 majority, Coutinho, 38, had earlier been a special advisor at HM Treasury during Rishi Sunak’s spell as Chancellor.

Since last October she had served as under-secretary of state for children, families & well-being,  following a year as minister for disabled persons at the Department for Work and Pensions.

An Oxford graduate in maths and philosophy, Coutinho’s career history includes spells at investment bank Merrill Lynch & accountants KPMG.  Before entering Parliament she worked at the Centre for Social Justice think tank.

Backing Sunak as leader last summer in the Conservatives’ internal choice versus Truss, the Brexit-voting Coutinho is on the advisory board of Onward, the Conservatives’ centrist policy group, headed by Lord Danny Finkelstein.

Sunak created D-ESNZ earlier this year, highlighting both energy’s role in the UK’s post-Ukraine security and Net Zero goals judged inadequately stressed by the old Department for Business, Energy & Industrial Strategy.

Issues awaiting its new boss include energy’s contribution to the continuing cost-of-living crisis, confirming Sunak’s declared enthusiasm for “hundreds” of new oil extraction licences, and defending the government’s implementation of its Net Zero agenda against increasingly restive Conservative media and backbenchers such as the Net Zero Scrutiny Group, headed by South Thanet MP Craig McKinley.

Modelling itself on the Europe Research Group instrumental in securing Brexit, McKinley’s ginger group enjoys close links to Tufton Street’s covertly funded Global Warming Policy Foundation.

Departing environment minister Lord Zac Goldsmith is among green-conscious Conservatives recently questioning Sunak’s commitment to combatting the planet’s climate catastrophe.  Declarations last month by oil minster Andrew Tweedie that Sunak’s government will press ahead to “max out” Britain’s untapped North Sea reserves increase liberal and centrist Tories’ nervousness.

Coutinho’s links to centrist Tories such as Finkelstein may be seen as Sunak’s reassurance to Conservatives on the party’s beleaguered left.

The daughter of doctors with roots in Pune, India, Coutinho was once a contestant on the TV cooking show, ‘The Taste’, in which Nigella Lawson was a judge.

The premier’s mini-reshuffle today is caused by Ben Wallace’s intention declared in July to quit as defence secretary at the next re-shuffle, after four years in the post.

Shapps, 54, had headed D-ESNZ since its formation in February, and had run D-BEIS since last October, when he replaced Jacob Rees-Mogg, incumbent under the 45-days of Liz Truss.

Shapps, Home Secretary for six days under the self-destructing Truss, now heads military policy.

In 2012 the Welwyn Hatfield MP was permitted to remain a minister under David Cameron, – whom he had backed to lead the Tories – after revelations that in his early business career, Shapps had sold “personal wealth enhancement” software online for his How to Corp brand, under the fictitious aliases “Michael Green”, “Sebastian Fox” and “Corrine Stockheath”.

Having initially threatened legal action against his accuser, a constituent named Dean Archer, Shapps admitted in 2015 he had indeed traded under a pseudonym.  He had also “over-firmly denied” having a second job while an MP, Shapps admitted.

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Critics pointed out that notionally average bills still stand at levels more than £200 higher than before first Covid then Putin’s assault on Ukraine threw world energy markets into turmoil.

The fall to £1,923 represents a 7% drop on the existing cap.  Analysts Cornwall Insight explained that the regulator had altered its means of calculating typical household volumes, the notional Typical Domestic Consumption Value  (TDCV). Under its assumptions of lower consumption volumes, the cap will amount to annual bills for average households approximately £100 per year less.

Dr Craig Lowrey, principal consultant at Cornwall Insight said: “While this modest drop in the cap won’t make a substantial difference to household energy bills, it is encouraging that prices from October are moving in the right direction.

“Unfortunately, Cornwall Insight’s predictions for 2024 show prices continuing to languish well above pre-pandemic prices – something which is currently forecast to remain the case for the remainder of the decade.

Lowrey cited threatened strikes at Australia’s LNG compressing plants as underscoring  Europe’s exposure to upward pressures on global markets.

He called for greater government attention to protecting Britain’s vulnerable bill players, pointing out a mass programme of home insulation could result in lower bills.

“Protection of the vulnerable must be a primary concern, and the introduction of social tariffs such as those already in place for water and telecommunications remains an option”, the Cornwall expert opined.

Interviewed on Radio 4’s “Today”, energy minister Andrew Bowie said proposals for a social tariff were out to consultations via Ofgem.  He defended government measures such as Rishi Sunak’s temporary, reluctantly imposed tax on excess energy company profits.

From Citizens Advice, the nation’s statutory advisor on fighting the fuel poverty now afflicting 6.3 million households, up nearly two million since 2021, criticism of the lowered cap was withering.

Gillian Cooper, the body’s head of energy policy, said “Well before the winter hits, we’re already helping record numbers of people behind on their energy bills.

“Today’s price cap announcement will do little to change that. Typical households are still facing sky-high energy costs, now that support schemes have come to an end.

“Increasing numbers of people we help are in a negative budget, where they simply don’t have enough money coming in to cover even just their essential bills”, Cooper added.

“The next few months will push households like these over the edge. Our data suggests it will be as bad, if not worse, than last winter.

“Government must step in quickly with more targeted support for the households who need it most.“

A robust defence of the price cap came from Greg Jackson, co-founder of Octopus, Britain’s third biggest home energy supplier.

“The energy price cap has been one of the most effective policies to improve retail energy. Initially, it drove efficiency programmes because companies could no longer pass on bloated costs to consumers. Then it cushioned the impact of the energy crisis, buying crucial time for the government to implement support programmes.

“It’s now forcing energy companies to pass on falling wholesales costs rather than pocketing profits. It protected customers – especially older and more vulnerable ones – from the loyalty penalty, and helped bring an end to the wild west of cowboy companies who sold at unsustainable prices leaving everyone to pick up the tab when they inevitably failed.”

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The move stands to save consumers a notional £426 annually, even as the cap replaces the Energy Price Guarantee, the government’s emergency subsidy. Since October that has pegged a hypothetical average household’s annual bill at £2,500 a year.

Ministers and the regulator stressed that the cap’s reduction will mean customers on default tariffs paying less for energy for the first time since global gas prices rose in late 2021, driven by world demand rebounding after Covid lockdowns.   Sanctions on Russian gas after the February 2022 Ukraine invasion further tightened the upward screw.

Falling wholesale prices of gas have enabled the regulator’s decision.

It also heralds likely renewed competition between suppliers, offering competitive fixed price deals for the first time since the energy crisis began.

Business and enterprise users remain cushioned only by the Energy Bills Discount. Its support was revised downwards in April from the more generous Energy Bill Relief scheme.

At its peak, Ofgem’s domestic cap had stood at £4,729.  With the new cap still more than double its pre-Covid levels, the regulator warned though that many households would struggle to meet even lower bills.

Ofgem chief executive Jonathan Brearley said more focus will be needed for government, the regulator and the industry to support the most vulnerable groups this winter.

He added: “After a difficult winter for consumers it is encouraging to see signs that the market is stabilising and prices are moving in the right direction.

“However, we know people are still finding it hard, the cost-of-living crisis continues and these bills will still be troubling many people up and down the country. Where people are struggling, we urge them to contact their supplier who will be able to offer a range of support, such as payment plans or access to hardship funds.

In the medium term the Ofgem boss foresees no return to retail energy prices paid before the crisis first bit in 2021.

“We believe it is imperative that government, Ofgem, consumer groups and the wider industry work together to support vulnerable groups.

Anti-poverty campaigners stressed that the reduction left many homes still facing eat-or-heat dilemmas every day.  The charity National Energy Action said it would still leave 7.5 million households in fuel poverty, unable to heat homes adequately.  In October 2021, that figure stood at 4.5 million.

Citizens Advice, identified in law as representing consumers on energy prices, was equally wary. Its head Dame Clare Moriarty pointed out the cap’s cut to £2,074 is nearly double what average domestic bills were as recently as 18 months ago.

“The fall in the price cap provides some desperately needed respite”, said Moriarty. “But energy bills will still be unaffordable for millions of households”.

“For many, life is getting worse, not better. Year on year we’re breaking records for the number of people struggling with energy debt.  It’s clear more government support will be needed in the future for struggling households.”

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