UK households are currently facing the worst effects of the global fossil fuel crisis as energy bills are set to hit a record £3,000 by October. The CEO of Ofgem previously warned that about 12 million people will face fuel poverty as a result of the price cap hike this winter. However, Octopus Energy CEO Greg Jackson said the UK should continue its support for vulnerable households and spread the energy crisis over three decades.
Speaking to Express.co.uk, he warned of the risks of not tackling rising inflation, saying: “We’ve got inflation close to 10 percent, and once you get into an inflation spiral, it’s very hard to get us out of.
“So spreading the costs over a long period of time reduces the impact on inflation, and that stops the spiral.
“With spirals, the problem, as we’ve seen, is energy prices are flowing through everything in the economy, and that’s the thing that if you’re not careful, everyone is chasing [inflation] upwards.
“Distribution is beneficial, it helps customers who are struggling and it helps reduce the inflation spiral.”
Leaving aside the cost of energy and food, which are hitting eye-popping levels around the world, the UK has seen the price of goods rise by 8 percent over the past two years, almost double that in the eurozone, which increased by 4.7 percent. percent rose.
Mr Jackson described the Covid-19 pandemic as an earthquake, which has seen the UK spend huge amounts of money fighting, using schemes such as the furlough and business support packages.
He said: “What we are experiencing now is the aftershocks of the earthquakes.
“Like an earthquake, the aftershocks can be just as dangerous as the earthquake itself.
“So if we deploy a huge amount of resources against the earthquake and we don’t deploy enough against dealing with the aftershocks, we risk the same kind of damage.
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“Would it not be a failure that we have done everything we can with the earthquake and the pandemic, we would still suffer for not addressing the aftershocks.
“So for me, let’s deal with the aftershocks, we can’t just let it drive.”
In a bid to tackle rising energy bills, Chancellor Rishi Sunak has launched a major £15bn package, with around eight million of the UK’s most vulnerable households to receive aid of at least £1,200 this year.
Mr Jackson welcomed these measures but warned the government should be open to more such schemes.
He continued: “We are very happy with the government’s support on the energy bill, it’s a good example of what I’m talking about, by spreading it.
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