THE CBI is calling for a revamp to the energy market following the sharp increase in the price cap.
Last week, it was announced that from April, bills would rise £693 from £1,277 to £1,971 per year due to the surge in wholesale prices.
However, households living council tax bands A-D would receive a £150 rebate from the government, while chancellor Rishi Sunak announced that every household will have a £200 loan in the autumn, which would be repaid when prices fall, at a rate of £40 per year.
This doesn’t go far enough for the CBI.
Its chief policy director, Matthew Fell, said that while the rise in the price cap was inevitable, it would put additional pressure on squeezed household incomes.
“The Government is right to focus on the most vulnerable customers but must urgently work in partnership with energy suppliers to ensure these measures are effective,” he said.
“Short-term support must go hand-in-hand with a revamped retail energy market, setting a higher bar for market access and tougher stress testing for suppliers.”
And he wanted to see support for businesses impacted as a result.
“Steps to protect cashflow for smaller firms and heavy industry should follow today’s announcement,” he said.
“Government must also step up the level of investment and pace of delivery in home energy efficiency improvements and push forward with ambitious plans to progress the clean energy transition.”
