By Paul Kelso, business correspondent
Launching his plans for Great British Energy, a state-owned clean power company, Sir Keir Starmer promised the new entity would reduce bills, create jobs and deliver increased energy security.
Specifically, Labour’s press release for an idea first announced in October 2022 said: “Great British Energy will cut energy bills for good, as families face the threat of £900 annual energy price spikes under Tories.”
That claim is based on analysis of fluctuations in the energy price cap set by Ofgem and the prospect of soaring energy prices, triggered by global events – specifically, the Russian invasion of Ukraine – being repeated.
Labour’s analysis of the price cap calculates that in the two years since April 2022, consumers have paid around £1,880 – or around £900 a year – more than they would if prices had remained at pre-war levels. The government also spent £94bn on the energy price guarantee, further capping bills at £2,500 per household.
While the £900 figure is correct, and energy bills remain well above the long-term average, the likelihood of further spikes depends on your reading of world events.
Where Labour and the Conservatives agree is that the way to increase energy security and cut bills is to accelerate the transition to renewable and low carbon sources of power. Where they differ is how fast that should happen.
Read Paul’s full analysis here:
