The answer is yes, according to the Chief executive of Centrica, Chris O’Shea
Chief executive of Centrica (British Gas owner), Chris O’Shea has expressed that soaring energy prices which threaten the living standards of millions – could last up to two years causing large concerns for customers. He has also expressed there is no reason to expect gas prices should come down “any time soon”.
A rise in living costs come after the world awakes from a covid-related slumber with many counties using gas an intermediate solution to wean themselves off more carbon-intensive energy sources alike oil and coal. Therefore, creating a higher demand for gas.
Mr O’Shea suggests three moves the government could make to help households cope. Described as a “cost of living crisis”.
- Defer the cost incurred by surviving suppliers from taking on customers of the companies that have gone bust.
- Take the 5% VAT off energy temporarily, or permanently.
- More levies charged to fund a green transition from bills to general taxation.
Government officials have discussed targeting relief through changes to the warm homes discount plan, which currently offers a one-off payment of £140 to those in receipt of certain benefit
“We bring gas in from the United States, from Norway, from Europe, from Qatar, from other places. So, we’re not able to simply have the UK as an isolated energy market. We are part of a global market.”
There are now fears that electricity bills could rise to unsustainable levels in 2022, with industry analysis estimating that annual household bills could reach £2,000 a year.