A new commission made up of energy experts has formed today (14 August) to protect the UK from future energy crises.
The Energy Crisis Commission (ECC) will seek to learn lessons from the country’s handling of the energy crisis, which began in 2022 following the Russian invasion of Ukraine and sent gas prices soaring. The ECC commissioners, who include leading figures from Energy UK, National Energy Action (NEA), Citizens Advice, and a top UCL academic, will make high-level policy recommendations to ensure that the UK is better able to withstand any future energy crises.
The ECC will be chaired by David Laws, MP for Yeovil from 2001-2015 and current chairman of Energy UK.
Commenting on the commission’s launch, Laws said: “The energy crisis has been hard on households and businesses alike. It’s important that we reflect on what has happened and steps that the country could take to mitigate the impacts of any future crises to ensure we are more resilient.”
The commission is today launching a call for evidence; this will remain open throughout the summer, with findings expected to be published this autumn.
Louise Hellem, commissioner and chief economist at the Confederation of British Industry (CBI), noted that the energy crisis has had significant negative impacts on businesses and the wider economy as well as households, saying: “Energy price volatility over recent years has brought impossible choices for many families and significant cost pressures for businesses in multiple sectors, limiting their ability to invest.
“Assessing how policies can better protect households and businesses alike is important to bolster future energy resilience—an objective that business and government must work together to achieve. This should include prioritising catalytic green investment to build long-term energy security, improve home energy efficiency and accelerate the UK’s pathway to net zero.”
Jim Watson, ECC commissioner and professor of energy policy at UCL added: “Whilst energy bills have now started to fall, it is essential that we learn lessons from the global energy price crisis. This is not the first time sharp increases in fossil fuel prices have had such widespread effects on households, businesses and entire economies—and it is unlikely to be the last. The transition away from fossil fuels will not be smooth, and needs to include strategies to respond to the highs and lows of fossil fuel markets.”
Energy crisis continues to bite
The gas crisis and resulting price hikes sent shockwaves through the UK, with rates of fuel poverty skyrocketing.
Earlier this year, the UK’s energy regulator, Ofgem, revealed that total energy debt and arrears rose by around 50% in 2023, from £2 billion to £3 billion. The number of households in energy debt and arrears rose from 1.9 million to 2.3 million over this period—an increase of 20%—with over 1.7 million people disconnected from their electricity supply at least once a month in 2023.
Meanwhile, analysis from energy think tank the Energy & Climate Intelligence Unit (ECIU) predicts that average annual energy bills are set to rise by £600 from October 2024, with the energy price cap set to save households a mere £17 on average this summer. Energy prices are expected to continue rising until at least October 2025, which could add as much a £2,600 to the average household energy bill over this period.
ECC commissioner Matt Copeland, head of policy and public affairs at NEA, spoke to the strain on households, commenting: “High energy prices have driven millions more into fuel poverty. Bills remain 50% higher than pre-Covid levels. We anticipate that’s where they’ll remain for the rest of the decade. This is completely unaffordable for millions of fuel-poor households.
“Shielding households from future price hikes is crucial, especially as their resilience has been diminished by almost three years of sky-high bills. Many have cut their energy use right back yet they still owe billions of pounds.
“This commission aims to learn the lessons from the peak of the energy crisis and ensure that low-income and vulnerable households are never exposed to the debt and despair of such high prices again.”
