As fossil fuels become more and more scarce, the world will have to change its energy source in the next few decades, says James Thorburn, chief executive officer of Engie UK & Ireland. If we don’t act now, we will pay the price sooner or later. We may as well do it sooner and vaccinate ourselves from the effects of this crisis by taking action now.
Portugal’s Lisbon According to the CEO of gas and electricity provider Ovo Energy, the U.K. should launch a “vaccination-style” initiative to address rising energy prices and avert future energy crises.
Over the following two years, the typical U.K. household will pay a charge of £2,500 ($2,900), up from £1,400 in October 2021. Even though the government capped consumer energy costs in the beginning of September, that is still the case.
Ovo CEO Raman Bhatia urged for action on a par with the nation’s Covid vaccination launch, a project essential to its lockup exit plan.
Bhatia stated live on stage at a fireside chat conducted by CNBC at the Web Summit tech conference, “There needs to be a very aggressive intervention, vaccination-style.
Cold weather, oil and gas shortages brought on by Western sanctions on Russia over its invasion of Ukraine, and a subsequent price spike have all threatened to disrupt lives and companies in Europe.
The Covid epidemic, which caused abrupt increases in energy consumption due to the reopening of economies, is to blame for the crisis’ origins. People are already having difficulty paying their energy bills, and some have even refused to pay.
The government of the United Kingdom created a rebate scheme that provides consumers a £400 reduction on their energy bills in an effort to relieve strain on both homes and companies. The initiative is scheduled to end in April 2023.
In addition to stating that further help is required “to include the squeezed middle, who are experiencing a financial problem for the first time” due to rising interest rates, Bhatia also stated that he anticipates the grants to continue beyond that point.
In order to avoid reaching a cliff edge, he added, “What we as a sector anticipate [and] what I would expect is some form of assistance to extend into April.”
29 U.K. energy providers went out of business between July 2021 and May 2022, including Bulb, which was previously the seventh-largest. Prior to the arrival of government assistance, Ovo had issued a warning that it might not be able to fulfil its lending commitments this year.
Following an agreement to purchase the retail division of Scottish company SSE Energy, Ovo rose to the position of second-largest home energy supplier in the United Kingdom.
Bury Britain in snow
Bhatia demanded more assistance for UK consumers of retail energy as well as a widespread campaign to insulate homes.
We have the most leaky, draughty homes in all of Europe, according to Bhatia.
His remarks reaffirm the recent protest group Insulate Britain’s requests for homes to be energy-efficient by 2030.
According to Bhatia, 75% of homes in the UK are inefficient due to inadequate insulation.
In order to be in a better position for the upcoming winter, Bhatia continued, “We must embark on a push to insulate every single home.”
As challenging as the upcoming winter may be for consumers, energy industry executives have cautioned that consumers should be more concerned about the winter of 2023.
changing our sources of energy is real.
Europe’s reliance on fossil resources, notably gas from Russia, has been made clear by the crisis.
That, according to Bhatia, emphasises the significance of switching to renewable energy.
“I believe there is an energy shift. And the expenses of the energy transition have increased in the short term. The long-term opportunity, however, has grown even more urgent and urgent, the speaker said.
He said that there are options for people to increase their energy efficiency, like setting up smart metres and air source heat pumps as well as utilising applications to monitor and manage electricity usage.
Everyone, he continued, “has to play a part.”
At this week’s COP27 summit in Egypt, nations are under pressure to offer solutions to the climate crisis.