Paying too much for energy

From April, the average household will be paying around £2,000 a year for their energy. By October it may be closer to £3,000. Many will struggle to pay. This price does not reflect the true energy costs, which are lower. Consumers are paying too much. Whilst the price of gas has gone up, this is only one part of energy costs. Energy costs from nuclear and from renewables have not increased. The costs of the network distributors are too high. The costs of supply failures are being added to the bills. Then there are all the costs from past renewables subsidies and a host of policy costs. Five years ago I carried out the Cost of Energy Review, setting out why we are all paying too much and what should be done about it. Five years later, failing to implement its main recommendations has made the situation much worse. It does not have to be like this, but it will take a rethink of energy policy and some rapid changes.