Rishi Sunak, the Conservative MP who is in the race against Liz Truss to become the next PM, reportedly declined a proposition created by an energy company that would freeze energy bills at less than £2000. The energy price cap is the maximum amount an energy supplier can charge customers in England, Scotland, and Wales for each KWH of energy used. The annual average bill is expected to reach £3,582 by October, and increase even steeper to £4,266 in January 2023. Essentially, this means that on average each household will be paying £355 (at a higher estimate) per month, rather than the £164 households are paying a month currently (again, on average).
To put this whole thing in perspective, I just mentioned that bills are estimated to reach £4,266 on average, whereas if Sunak listened to the proposal from the energy companies, then the bills would’ve frozen at £1,971.
Yesterday evening according to the Sunday Times, Rishi Sunak was forwarded a proposal in April from Keith Anderson, CEO of ScottishPower, “to freeze bills at their level at the time for two years.”
“Under the plans, suppliers would front the cash needed for wholesale fuel – which have soared in price since” the current conflict between Ukraine and Russia – “drawing on a ‘deficit fund’ supported by banks.”
“Those sums would then be spread across consumer bills over the next 10 to 15 years, or through taxation.
While the proposal would mean that consumers would not pay any less for their energy in real terms, it would spread the cost more evenly at a time when energy bills are being seen as the main strain on household income.”
Even though people claim the current war between Ukraine and Russia has had some effect on fuel prices, it has not. The issue actually lies from policies the British government is making; for example, placing sanctions on Russia making it very hard to import fuel is one of the major reasons why fuel prices are so high; and taxes which have increased astronomically.
According to the official government website, 52.59 pence per litre of petrol and diesel are actually fuel duty rates, in other words, taxes. On average, the current rate of petrol and diesel per litre is £1.88. Meaning 27.97% of fuel prices are government taxes; and though this might not seem like a lot, it adds up. For example, say you spend £100 on diesel, which on average equates to 53 litres of fuel meaning that £28 of your money is then used for government taxes; which they then use to spend £1 million a day on housing Economic Migrants/Refugees.