The CEO of the owner of British Gas has spoken out on the national and international energy crisis and warns that large bills could take up to two years.
In an interview with the BBC, Chris O’Shea, CEO of UK gas owner Centrica, said there was “no reason” to expect gas prices to fall “anytime soon”.
He said the price hike would last for the next 18 months to two years.
The rise in costs is due to the fact that many countries are trying to reduce their consumption of carbon-intensive energy sources such as oil and coal.
Which in turn has led to an international trend towards gas.
“On our way towards net zero, gas is an important transition fuel.
“And when you turn off coal-fired power plants in other countries, there isn’t enough gas to just turn on quickly,” Shea said.
“I’m not sure if an increase in UK supply would have lowered the price of £ 3 a Therm as it was in December from 50p a year ago,” he told the BBC.
“We bring gas from the USA, Norway, Europe, Qatar and other countries. So we are not in a position to simply have the UK as an isolated energy market. We are part of a global market. “
He suggested three steps the government could take to ease the cost of living crisis as people struggle to keep pace with rising bills amid a pandemic.
Mr Shea proposed that the government remove the 5% VAT on energy – temporarily or permanently.
Postpone dues charged to fund a green transition from invoices to general taxation and postpone the costs incurred by suppliers that customers take on from businesses that have collapsed – instead of adding them to their next invoice .