E.ON UK CEO Michael Lewis responded to the UK Government’s Budget, describing the energy policy updates as a “mixed bag” of valuable support for customers right now but lacking a longer term direction of supporting vulnerable customers over winter and beyond, and reducing our reliance on imported fossil fuels.

Michael Lewis said: “As we’re all too aware, the cost of energy has become unaffordable for many and is expected to be the case until wholesale costs fall back to pre-2021 levels.

“We welcome the Government’s continued support for customers by extending the Energy Price Guarantee beyond 1^st April. A £500 rise in average bills, coupled with the end of the £400 Energy Bills Support Scheme, would have been an unbearable extra burden for a great many people. The Government should be commended for listening to those concerns and responding with this measure. By the same measure  we're pleased that customers with a prepayment meter will no longer pay a premium and will instead pay charges comparable to direct debit customers.

“Energy prices are still double what they were in 2020 and remain unaffordable for many. Our concern is that families will still need help next winter if wholesale prices stay the same and there is nothing in today’s Budget that signals a longer term plan to reduce energy consumption and cut bills.

“Solving this issue in a sustainable way means providing targeted support to those who need it most, for example pensioners and those on certain means-tested or disability benefits.

“A so called social tariff based around the principle of a rebate as advocated by last week’s independent report by the Social Market Foundation and Public First for Citizens Advice should be developed and be in place for next Spring which will benefit millions of financially vulnerable customers. Ahead of this, I will continue to urge Government to ensure a new short term targeted energy bill support scheme is operational by the winter of 2023 so people are not hit as hard as they might otherwise be."

Michael Lewis added: "We’ve consistently said the only viable option to reduce bill shocks in the longer term is to reduce energy demand through greater energy efficiency and weaning ourselves off our reliance on foreign gas and replacing it with home-produced electricity.

“I am frustrated that new funding to support energy demand reduction is missing from today’s Budget as we all know energy efficiency is the best investment for the country when households are struggling: it makes homes more comfortable, relieves pressure on our health service, cuts energy  costs, grows the economy with new green collar jobs, and contributes to net-zero on a sustainable basis.”

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