Current Energy crisis British Gas owner Chris O’Shea, CEO of Centrica, said it could last for another two years. Told the BBC You shouldn’t expect prices to start falling “immediately” and there is no “reason” to do so.
O’Shea believes that the current state of the energy market is “here for the next 18 months to 2 years.” However, he argued that the concerns expressed by many about the bill rising by more than 50% to more than £ 2,000 could be “misplaced.”
O’Shea also called for more to be done to help consumers suffering from rising costs, especially those in fuel poverty.
The “transition” of green energy is also causing high prices
We know that the economic slowdown due to the global pandemic and reduced gas supply has played a major role in raising these costs, but O’Shea also said that gas as a nation is global. We commented that demand is also increasing significantly and we are moving towards the use of more environmentally friendly alternatives. This further boosted demand and caused prices to skyrocket.
“As we move towards Net Zero, gas becomes a major transition fuel. Therefore, when turning off coal-fired power plants in other countries, there is not abundant gas that can be turned on immediately.”
But in addition to this, Mr. O’Shea could not even avoid or even mitigate the current situation if Britain already had its own gas supply, or if it increased its supply from the North Sea. He expressed his suspicion. ..
“I don’t know if the increase in UK supply has reduced prices from £ 3 in December to 50 pence a year ago.
“We bring gas from the United States, Norway, Europe, Qatar and elsewhere. Therefore, we are not simply in a position to have the UK as an isolated energy market. We are part of the global market. “”
Three measures that lead to cost reduction
When asked about what he could do to improve the situation, O’Shea gave the BBC three approaches that the government could take to make things easier in the UK home.
- Instead of adding it to our invoice, we postpone the costs incurred by the surviving suppliers from taking on the customers of many bankrupt companies.
- Takes 5% VAT from energy.
- Move the levy levied to fund the green transition from bill to general taxation.
He also said that these measures “could be implemented very quickly” and “handle half of the price increase”, and the government would provide additional support to those who need it most. He added that it would give room to do so.
Other options that the government may consider
The government is showing signs of deciding what support can be provided to UK homes before the new energy price cap is announced on February 7.But this is New caps are expected to increase again Currently there is no option for consumers to do Energy comparison Switch tariffs-as Best energy transaction Currently, there is a national energy price cap. Best energy supplier..
Some energy companies are seeking additional financial support in the form of funds or loans that companies in the industry can use to lower costs when wholesale prices are high. After that, they will be repaid over a long period of time through the customer’s invoice, so you will not face such a significant price increase in the short term. However, plans to promote this have not yet been agreed and officially proposed.
That’s why, and in the face of what O’Shea predicted over the next two years, many want some form of government support. In the meantime, those concerned about energy prices are advised to check the eligibility of current schemes such as: Warm house discounts, Winter fuel payment And that Cold district payment..
https://www.techradar.com/news/high-energy-bills-could-last-for-two-years-according-to-british-gas-owner/ High energy rates can last for two years, according to British Gas owners