‘Decade of decisions dodged’ led to energy crisis

The current crisis caused by the spike in gas prices is the result of a “decade of complacency” in Downing Street, the shadow chief secretary for the Treasury has claimed.

In a debate this afternoon (21 September) on working people’s finances and government policy, Bridget Phillipson highlighted the impact of “soaring” energy prices on household budgets.

She went on to accuse the government of allowing the problem to fester by failing to act on energy security.

Phillipson said: “This crisis may be sudden, but the causes are long standing: dependence on imports; a lack of energy security; inadequate emphasis on storage; a decade of decisions deferred and dodged. This is a crisis made in Downing Street that was caused by a decade of complacency. Gas stockpiles are at their lowest level for 10 years.”

She echoed attacks by shadow business secretary Ed Miliband earlier during question time for ministers from the Department for Business, Energy & Industrial Strategy (BEIS).

He said: “At least half a million families are going to be thrown into fuel poverty by the rise in energy prices. On top of that, along with national insurance rises, millions of families are facing a £1,000 a year cut in universal credit in just 10 days’ time. It is a Tory triple whammy made in Downing Street.”

Miliband added that UK households are “particularly vulnerable”to rising energy prices due to the government’s “failure” on home insulation, including the “complete fiasco” of the Green Homes Grant (GHG), which was cancelled in March, and delays to its Heat and Buildings Strategy.

Business and energy secretary of state Kwasi Kwarteng told the Commons that a replacement for the GHG will be brought forward “imminently”.

Last night, Kwarteng and Ofgem published a joint statement assuring customers that the energy price cap is not being scrapped as a result of spiralling prices in the wholesale gas market.

Utility Week has launched its Energy Reset campaign, in a bid to ensure the current crisis results in real reform of the energy retail market.