The possibility of families refusing to pay their soaring energy bills poses a dilemma for whoever succeeds Boris Johnson as prime minister and may place more pressure on domestic energy suppliers as they contend with record wholesale prices.
A campaign urging individuals not to pay rising energy bills is gaining momentum, according to its organizers, who have been deemed “very irresponsible” by the government.
The organization known as Don’t Pay reported that 70,000 people had signed a vow to withdraw their direct debits for gas and electricity on October 1 in protest of rising expenses they could not afford.
It threatened to impose its own much lower energy price cap if the Treasury did not provide a significantly enhanced cost of living compensation settlement.
The next official energy price cap adjustment is scheduled to take effect on October 1st.
The cap, which is managed by the energy regulator Ofgem, currently results in the average family paying £1,971 a year – a record amount that mostly reflects the increasing demand for oil and gas when COVID limitations were lifted.
However, according to the most recent forecasts for October, given earlier this week by energy consultancy Cornwall Insight, the annual ceiling will increase to £3,359 and continue to rise until it reaches a peak of £3,723 in April 2023.
The majority of these projected price hikes are attributable to wholesale natural gas prices, which have skyrocketed in the wake of Russia’s war in Ukraine.
As a response to Western sanctions, Moscow has drastically reduced exports to Germany via the Nord Stream 1 pipeline, increasing the price spiral and hunt for supply as the winter months of high demand approach.
Ofgem, which is due to announce October’s cap level later this month, is receiving criticism for its recommendation that the cap is revised every three months instead of twice a year in the current circumstances.
Don’t Pay, which was founded by a group of individuals concerned about growing bills and the escalating prospect of fuel poverty for millions of additional families, reported that the number of people signing its commitment to not pay bills was doubling each week.
It was stated that 15,000 individuals “from all walks of life” were “organizing” in their local towns and that the number of requests for flyers with additional information had reached 1.6 million.
The organization stated that tensions have been heightened in recent weeks due to the disclosure of earnings by British Gas parent company Centrica, Shell, and BP.
A system designed to generate profits regardless of the human cost.
The possibility of families refusing to pay their soaring energy bills poses a dilemma for whoever succeeds Boris Johnson as prime minister and may place more pressure on domestic energy suppliers as they contend with record wholesale prices.
Additionally, the campaign coincides with several union battles for salary rises in line with the rate of inflation, which is currently at a 40-year high of 9.4 percent and has primarily resulted in disruptive strikes by rail and other transport employees to date.
In reaction to Don’t Pay’s campaign, the government stated, “This is highly reckless rhetoric, which will ultimately increase prices for everyone else and harm personal credit ratings.
“Although no government can control global gas prices, we are offering £37 billion in aid for households, including a £400 discount on energy bills and £1,200 in direct support for the most disadvantaged households, to assist with the cost of living.”
Critics, including opposition parties and charities, assert that it will not be enough to prevent millions of people from falling into poverty due to rising costs.
A representative for Don’t Pay stated, “Our politicians and oil and gas corporations have constructed an energy system that simply funnels money and profits upward, regardless of the human cost.
Many of us already struggle to pay our bills, while energy firms post record profits. That cannot be true, and we refuse to believe it.
“Working people will take action if the government and energy firms refuse to act. We will enforce a reasonable price collectively, and the government and oil and gas corporations will have to figure it out among themselves.”
