The WLGA has today responded to the news that Ofgem is to raise the energy price cap again from £1,971 to £3,549.
Councillor Rob Stewart (Swansea), WLGA Deputy Leader and Economy Spokesperson said
“To put this in perspective, the rise is the equivalent of a £400 per month for the average energy household bills paid by direct debit, or over £120 per week for those on pre-pay meters. This is simply unaffordable for most households across Wales.”
“This will destroy the state benefit safety net for many families leaving them unable to pay their bills and facing choices of feeding the meter or feeding their family. It will mean people not being able to buy the food or clothing they need. “
“In local government we are preparing plans to assist residents and help them prepare for the cost of living and energy price pressures and stand ready to assist the UK and Welsh governments in supporting people this winter. However, only the UK Government has the financial firepower that can protect residents from the worst impacts.”
“The hit to businesses across Wales will be as dramatic as that for families. Energy price rises will make them less competitive and less sustainable. Inevitably this will mean some businesses becoming unviable unless help is provided immediately. Businesses face a perfect winter storm of increased costs of energy, wages and goods, and significantly reduced demand. This has the potential to lead to significant business failures, job losses, crash the economy and bring about a deep and damaging recession.
“The UK Government must act now without delay to protect families and businesses from this catastrophe.”