Daisy Cooper, MP for St Albans, has unveiled a new Liberal Democrat plan to slash energy bills by £100 for the average household in St Albans, through clawing back the billions of windfall profits made by big energy operators.
Under this plan for an Essential Energy Guarantee, every household would receive a basic energy allowance – equivalent to 50% of average energy consumption – at a discounted rate. This would ensure that everyone could afford everyday essential energy needs like heating, lighting, and running medical equipment.
This intervention would save the average household £100 a year, while the poorest 20% would save an average of £140.
Families would receive extra allowances for children, and the most vulnerable – such as people with disabilities or on the lowest incomes would receive the discounted rate on all their energy use.
According to House of Commons data, 7.2% of St Albans households are in fuel poverty, struggling to afford their most basic energy needs.
The scheme will be funded by clawing back £5 billion in unexpected windfall profits from monopoly energy network operators.
Daisy said:
“Energy is not a luxury, it’s a basic human need.
“Yet huge numbers of people, in St Albans and across the country, are struggling to pay their energy bills whilst energy companies are raking in billions in unexpected profits – all thanks to a loophole in their contracts with Ofgem.
“This must change, and we Lib Dems have put forward a plan to do this: to slash energy bills by clawing back these profits, ensure everyone can cover their basic energy needs, and give families the long-term energy security they need.
“With Trump’s idiotic war in Iran continuing to hike up fuel costs, it’s more important than ever that the government adopt our plan and give everyone the peace of mind that they can afford their essential energy.”
This is the newest part of a package of common sense policies put forward by the Liberal Democrats: ensuring all new homes are zero carbon, a new home insulation upgrade programme, breaking the link between electricity and gas prices, and removing the renewables obligation levy from bills. Overall, the party’s plans would halve energy bills for families in the next decade.
