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Green Alliance publishes briefing on protecting consumers from high energy bills

The Green Alliance has published a briefing on protecting consumers from high energy bills, setting out the causes of the 2021 price spike and what it says should happen next.

A newspaper on a kitchen table beside a model of energy bills and the price cap

The Green Alliance, an independent environmental think tank, published a briefing on protecting consumers from high energy bills on 1 February 2022. The briefing examines what caused the spike in energy prices, what it says needs to happen in the short term to protect consumers, what needs to happen to stop the crisis recurring, and public opinion on renewable energy investment and fossil fuel phase out1.

The briefing states that soaring global gas prices in 2021 left UK households and businesses facing higher bills, with high prices predicted to continue into 2022. It says the knock-on effect has been felt in the retail energy sector, with many smaller firms going bust and larger firms now affected too1.

On the scale of supplier failures, the briefing states that the record increase in energy bills has caused 21 suppliers to collapse since the start of September, and that the collapse of Bulb brings the total number of households affected by a failed energy supplier to more than 3.7 million this year1.

"This briefing answers the following questions"
Green Alliance, Protecting consumers from high energy bills1

The briefing lists four questions it addresses: what has caused the spike in energy prices; what needs to happen in the short term to protect consumers; what needs to happen to stop this crisis from happening again; and what public opinion is in relation to renewable energy investment and fossil fuel phase out1. The document is available as a PDF download from the Green Alliance website, and Joe Tetlow, senior political adviser, is named as the contact for more information1.

Why it matters for households

The briefing was published at a point when the cost of wholesale gas was feeding directly into household bills, and when the failure of retail suppliers was moving customers onto new providers. For a household, a supplier collapse means an automatic switch to a supplier of last resort, and the terms and standing charges of that new supply are set by the process rather than chosen by the customer. The briefing's figure of more than 3.7 million households affected by a failed supplier in a single year gives a measure of how many homes were exposed to that change1.

The questions the briefing sets out also map onto the practical levers that determine what a household pays. Short term consumer protection concerns the price cap and direct support with bills, while preventing a repeat of the crisis concerns the structure of the retail market and the policy costs and levies that sit on every unit of gas and electricity. The briefing's fourth question, on public opinion on renewable energy investment and fossil fuel phase out, connects the bill crisis to the question of what the UK generates its own power from, which is the part of the picture a household can influence least directly but which shapes energy independence over the longer term1.

The briefing does not set out rates, eligibility rules or a timetable for support in the material published on its summary page. Those details, where they exist, are in the PDF rather than the page text1.

What happens next

The briefing itself sets out no dated next steps. It poses the four questions above and offers a PDF download; no announcement of a follow-up publication, consultation response or campaign date appears in the published summary1.

Sources1 cited
  1. Protecting consumers from high energy bills ยป Green Alliance, green-alliance.org.uk