Tuesday’s report from the Energy Crisis Commission found that Britain was “dangerously underprepared” for the 2021 and 2022 energy crisis, when the lifting of Covid-19 restrictions and Russia’s invasion of Ukraine pushed up the price of gas.
At one point, before a massive £150bn intervention was pledged by the Government, a typical household could have seen its annual bill rise from around £2,000 per year to £3,500 per year.
In the event, costs were capped at £2,500 per year. But even this had “catastrophic” consequences for poorer households, the commission found, with nine in 10 households cutting back their energy use and 7.5m falling into fuel poverty.
At the same time, one in 10 businesses were forced to temporarily cease operations to shield themselves from the eye-watering cost of energy.
The commission found the impact of price rises could have been cushioned if more homes were properly insulated and the UK had more gas storage capacity.
They also said the Government spent more money than it needed to because of poorly designed support schemes and a lack of investment over many years in infrastructure such as gas storage.
In a report, the commission said: “Keeping bills down for everyone over the coming years and decades means reducing our dependence on gas and its volatile pricing; increasing the production and distribution of clean homegrown power; and making more of our homes and businesses energy efficient.”
Ed Miliband, the Energy Secretary, has pledged to make Britain’s power grid “net zero” by 2030 and to insulate more than 1m social homes in England by that point as well.
Jim Watson, one of the panel members and an energy expert at University College London, argued that investment in renewables would add to consumer bills in the short term, but would ultimately shield households from much bigger price increases in the long run that could come from further gas price shocks.
Mr Miliband said: “This report shows industry experts support making Britain a clean energy superpower, which is a core mission of this Labour Government.
“The Conservatives surrendered Britain’s energy security, and every family and business has paid the price. Under the Tories, energy prices spiked and fuel poverty increased. 14 years of complacency left Britain exposed to global fossil fuel markets and the dictators like Putin who control them.
“After the Tories’ catastrophic failures, we have taken decisive action. We overturned the nine-year onshore wind ban within 72 hours, have overseen the most successful renewable auction in history, set up Great British Energy and taken action to lift one million renters out of fuel poverty with new energy efficiency standards.”
The call for more investment in renewable energy comes after the Sizewell B nuclear power station, in Suffolk, temporarily shut down for refuelling on Friday. The 1.2 gigawatt site is not expected to return to full capacity until December, according to owner EDF.