A freeze on the energy price cap now looks inevitable. The increase that Ofgem plans to announce on 26 August and the further increases later in the year should be abandoned by the energy regulator, whose functions have been overwhelmed by events. Ofgem cannot realistically set in motion a process that further fuels inflation, already running at 10%, and condemns millions to fuel poverty. The honourable resignation of Ofgem board member Christine Farnish will not be the last departure from an organisation that has lost its way.
The freeze is necessary but far from sufficient. We still rely on natural gas for about 40% of our daily energy consumption. The promised energy transition has barely begun. The price of the gas we import – about half of total consumption – will still be set on the world market, and is likely to keep rising, especially if Europe’s hot summer is followed by a cold winter. Further action is needed, from the government and the energy industry.
