Energy bill cap rise a 'national act of harm' as energy firms share £84bn
Raising the cap on energy bills would be a “national act of harm”, finance guru Martin Lewis says.
The money-saving expert took aim at a Conservative plan to increase the limit on a typical family’s energy costs from £2,500 a year to £3,000 in April.
Five energy firms gave £84billion to shareholders last year, data shows.
The Tories’ plan to raise the cap on energy bills is bound to damage the country, money expert Martin Lewis blasted yesterday.
It comes as analysis revealed five huge energy firms dished out a total of £84billion to shareholders last year.
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Mr Lewis said: “The nation is already shivering with the damage of the cost-of-living crisis and it just seems to me there is no need to do this. I would ask the Chancellor to postpone this rise.”
Speaking on BBC Radio 4’s Today programme, he added: “To put this national act of harm of increasing the price guarantee for just three months, to throw another 1.7million people into fuel poverty, taking it to 8.4 million, it seems unnecessary.”
Five energy firms dished out £84billion to shareholders last year (Getty Images)Mr Lewis said any cancellation would have to be before the March Budget, as by then people will have had letters about bill increases.
Saying energy prices are “effectively nationalised”, he added: “This is the one price mechanism that is fully in the Government’s control and it is choosing to put it up on April 1.”
The Government’s Energy Price Guarantee currently limits average bills for eligible customers to around £2,500 a year.
But under Tory plans to scale back help, the EPG is due to jump by 20% to around £3,000 at the start of April.
Analysis by campaign group Global Witness shows the West’s oil and gas “supermajors” such as Shell and BP raked in £110bn excess profits last year.
Mr Lewis wrote to Chancellor Jeremy Hunt on the issue (Alastair Grant/AP/REX/Shutterstock)That triggered what it called a “feast for shareholders”, with £39bn paid in dividends and £45bn in “share buyback” programmes.
The record profits were fuelled by a jump in oil and gas prices amid Russia ’s invasion of Ukraine in 2022.
Shadow Chancellor Rachel Reeves backed MoneySavingExpert founder Mr Lewis’s calls.
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She said: “We need to stop bills going up in April. That’s why Labour would freeze energy prices, paid for by extending the one-off tax on energy companies making windfall profits from war.”
Alice Harrison, of Global Witness, said energy companies were “profiteering from an energy crisis and a war”.
Mr Lewis also wrote to Chancellor Jeremy Hunt, saying: “Postponing the increase is a practical and fair decision.'
He went on: “Crucially, the damage to people’s pockets and mental health of another round of energy price rise letters is disproportionate.”
His letter won support from 21 charities and consumer organisations.
Think-tank the Resolution Foundation this week said the dip in wholesale prices since August’s peak has lowered the estimated cost of the EPG for the year from April from £12.8bn to £1.5bn.
The hit to many households from April could be even worse as it coincides with the last payment of a £400 cost of living boost to all customers.
Instead, extra help will go to vulnerable and low-income households. But for those who don’t qualify, the jump in bills from April could exceed 40%.
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