Energy cash handout

I'm not sure how to react to the news that the PM has failed to secure a £1bn cash handout from energy companies for families to help defray the impact of rising energy costs. Whilst I sympathise with families who are experiencing genuine hardship as a result of the recent price hikes, all but the most disadvantaged should be able to recoup most of the increase through energy saving measures. In fact, as far as climate crisis is concerned, increasing fuel costs is probably a good thing - if ecological arguments have failed to motivate us to cut energy consumption, then economic arguments surely will.
Offering handouts to compensate for rising energy prices would have sent entirely the wrong signals to a generally affluent nation which urgently needs to curb its consumption. Yet the replacement of the proposed fuel poverty package with an energy efficiency programme was announced almost apologetically. I'm not saying that we should not provide state support for those whose income is insufficient to sustain them, but support should be provided holistically, not focused on a single category of expense - and especially not on a commodity on which our disproprotionate reliance could prove to be our downfall.

Fuel poverty news

With fuel poverty becoming an increasingly serious problem in the UK, news today that we could be subsidising French energy consumers from now on. Energy company EDF, which supplies customers in both countries, has been ordered to cap price rises in France - increases will be limited to 2% for electricity and 5% for gas. Commentators are suggesting that if bulk energy prices continue to rise, EDF may be forced to recover from British consumers any revenue shortfall in France. However EDF argues that the two operations are entirely separate and the 11% price advantage French customers already enjoy is due to the fact that 80% of electricity produced there is nuclear. France also has up to four times the amount of gas storage as Britain, allowing it to buy gas in bulk at low prices during the summer for use during high winter demand.

Whilst we should all be encouraged to reduce our energy consumption, it's a basic neccessity of life. Many MPs feel that energy prices should not be left to market forces and highlighted the lack of controls in Britain’s liberalised energy market in a parliamentary report last month. Some are calling for the UK to adopt the French government's approach and restrict energy price rises to the inflation rate. Certainly this would help vulnerable households which this winter could find themselves unable to afford heat and light.

For expert advice on how to find the cheapest energy providers, sign up to Martin Lewis' excellent moneysavingexpert.com - regular alerts will advise you on when and how to act to cut your energy bills. Tips on how to cut energy consumption are available from the Energy Saving Trust. And if you're committed to cutting your carbon, greenhelpline.com compares tariffs from renewable energy suppliers which can save an average of 2 tonnes of CO2 per household per year.