The government has announced new plans on improving competition and innovation in the energy market, helping households manage their usage and costs
The energy consumers and affordability minister, Amanda Solloway, unveiled plans to broaden the energy market and give consumers more options for energy. These plans include tariffs with lower prices for specific times of the day, smart chargers that automatically use the lowest rates, and opportunities to invest in renewable energy in exchange for discounts on electricity bills.
Some retailers in the energy market are already providing flexible energy usage options for households in the UK. However, with today’s plans, a broader range of households will be able to access these opportunities.
The energy market is still recovering from the Russia-Ukraine conflict
Following Russia’s attack on Ukraine, energy prices soared, prompting the government to cover half of a typical household’s energy bills for the winter. Although prices have since dropped, with a reduction of two-thirds from their peak, most suppliers are still charging consumers the maximum amount allowed under the price cap.
The government is working with stakeholders and consumer groups to provide energy bill support for vulnerable households. Their aim is to ensure that the energy market remains strong, competitive, future-ready, and beneficial for consumers.
Energy suppliers are being asked to come up with ideas that will help consumers take advantage of lower costs and renewable energy sources. Suppliers have been asked to encourage consumers to optimise energy usage during periods of lower demand.
“The global rises in energy prices caused by Putin’s barbaric invasion of Ukraine shows why we need to bolster our energy security and strengthen our energy market, so families and businesses are protected while getting a fair deal,” said Amanda Solloway, minister for energy consumers and affordability.
Transitioning to renewable energy
Renewable energy sources now make up 40% of the UK’s electricity supply. The government plans mark a positive step in creating a more sustainable energy market.
The government is urging energy retailers to help consumers and suppliers by removing obstacles to innovation. The government will work alongside the industry, gathering to make low-carbon technologies more accessible and transform the energy retail market.
“We now want to put power back in the hands of consumers, giving them greater options to cut their energy bills in a market fit for the future. Today, I’m calling on the industry to work with us and take up the opportunities of investing in low-carbon technologies and providing first-class customer service,” concluded Solloway.
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