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Energy crisis: New tariff plans on gas bills amid factory closure warning in few days

Ministers are said to be planning new taxes. Gas bill As part of elimination plans. Conventional boiler By 2035

According to the report, the government will remove the green levy from electricity bills and add new charges to gas bills so as not to increase the overall cost of housing.

Levies will fund low carbon. Heating And the expected heat and long-awaited strategy for buildings will be announced, reportedly ahead of next month’s Cop26 Climate Conference.

Energy suppliers criticized. Energy price range On Saturday, he said it would not save homes from the expected increase in costs.

Rising gas prices have seen nine domestic energy firms go out of business, forcing 1.7 million consumers to find new energy providers at higher rates. Energy firms have warned that a flurry of suppliers could lead to higher prices for households.

Paul Richards, chief executive of Togader Energy, which he said is currently recording losses, told BBC Radio 4 Today Program: “The price range as a mechanism is not suitable for the industry nor is it suitable for consumers.

“When the negotiation situation arises and the wholesale price starts to fall sharply, the price that will be delivered to the consumers in April may feel like a very poor deal, while at that time the price It feels like a price that is too high to be true. ”

Mr Richards said that although the energy cap protects customers in the short term, the failed suppliers resulted in £ 1bn and b3bn costs to businesses and homes.

Free It was revealed yesterday that the ministers had been privately warned that millions would face more than a third price hike next spring. Sources in the energy industry said they had told the government that a 34 per cent hike in energy prices could be needed next April to save endangered firms.

Gas prices are already at record highs as economies around the world recover from the epidemic. Wholesale gas prices on Thursday were ten times higher than in October last year. Some analysts predict that if wholesale prices continue to rise, bills could rise by 400 400 or more next year.

Ofgem can change the energy cap twice a year. After raising it in April due to rising wholesale prices, it rose 12-13% to 27 1,277 annually from October 1.

The British Chambers of Commerce have called for the introduction of energy price limits for small and medium-sized enterprises (SMEs) struggling with rising gas prices. However, David Dalton, chief executive of British Glass, told BBC News that the price cap would be helpful for SMEs but possibly “too late”.

Green levies for gas bills will be announced in weeks.

The government is set to move ahead with gas bill levy plans for low-carbon heating in the next two weeks.

The new strategy, which will reportedly be published in Glasgow before the launch of Cop26 next month, includes a new carbon pricing scheme that will increase the cost of gas bills.

The government intends to reduce electricity prices, which are significantly higher than gas.

An official source said. Times That the plans were “crazy” and Downing Street was failing to appreciate the “reality of the problem we are facing with energy prices”. The source said: “There is still a feeling that we are just riding on it and it will get better in a few months. But it is very clear that it will get worse before it gets better.

A spokesman for the Department of Business, Energy and Industrial Strategy said: “We will determine our approach to heat and buildings soon. No decision has been made.”

Ministers have been warned that the average energy bill could reach پون 2,000 next year if wholesale prices continue to rise. The price of natural gas is 213 pence per therm, which is 461% higher than last year.

Companies ‘days away’ from stopping production

Leaders of UK energy-based manufacturers such as steel, glass, ceramics and paper have warned the government that they could be forced to shut down production unless action is taken to increase wholesale gas prices.

Factory production may be forced to stop.


Despite talks with Business Secretary Kosy Quarting on Friday, industry leaders said no immediate solution or promise had been reached.

UK Steel boss Gareth Stacey said. Channel 4 News.“What we are asking Kwasi Kwarteng to do today at wholesale prices is just to step up, so that this pressure can be removed in the short term, for example, Portugal or Italy. Their governments are already there. They are investing billions of euros to help their industries and the British government has done nothing yet.

“We can’t wait until Christmas and beyond. Or even a few weeks. We need action now, it needs swift, decisive action,” Mr Stacey said.

“At the moment, there is one. Energy crisis“If the government doesn’t do something, there will be a steel crisis tomorrow,” Stacey added.

Mr Dalton of British Glass said some companies were days away from halting production.

Andrew Large, director general of the Confederation of Paper Industries, also said it was clear there were “serious risks” to closing the factory because gas prices were too high to bear. He warned that this would affect consumer retail through the supply chain.

Conservative lawmakers, along with Labor, called on the government to provide more help in the wholesale gas crisis.

Northwest Leicestershire MP backbenchers Andrew Bergen and Mary Cates, Penston and Stockbridge supported the government providing short-term support to the energy industry. Stoke-on-Trent Central Conservative MP Joe Gadon said. BBC That “potters, bricklayers and material scientists” also need government support.

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