An energy boss has highlighted the crushing reality of household bill increases by working out a pint would be £25 if beer prices had soared at the same rate as gas.
Greg Jackson, founder and chief executive of Octopus Energy – who is calling for Government intervention ahead of more bankruptcy-inducing price cap rises – made the brutal comparison as a Conservative MP warned people will be driven into homelessness by bills.
He told BBC Radio 4’s Today programme: ‘I think the spate of failures within the 29 companies that went bust last year – that was driven by gas prices roughly doubling. They’re currently nine to 11 times higher than usual.
‘Look, to put that in perspective, if this was beer, we’re talking about the wholesale price being £25 a pint.
‘People don’t know what a ‘therm’ is, but, underneath it, the ‘price per therm’ has gone from 60p to around £5 at the moment and that’s what’s passing through to customers if we don’t do something.’
He continued: ‘There are systemic issues. There are loads of questions of how we pay for this. One thing we can’t do is be expected to pass those costs on to consumers.’
Consultancy Auxilione has predicted the price cap on energy bills could reach a record £6,089 in April.
To put that in perspective, the current price cap is £1,971 per year on typical dual fuel (electricity and gas) use, which is already a sharp rise from last year.
Conservative MP and Rishi Sunak-backer Kevin Hollinrake said people will be ‘on the streets’ if they don’t get government aid to foot energy bills this Christmas.
He told Sky News promises by Mr Sunak’s Tory leadership race rival Liz Truss to slash taxes would give only an extra pound a week to Britain’s most vulnerable households – but the equivalent of £30 a week to the well off.
Mr Hollinrake said: ‘It is simply not right.
‘These people are going to be on the streets. Things are going to be that bad for some households.’
Bill Bullen, chief executive of Utilita, is demanding the Tories end their marathon leadership contest early so the energy crisis can be solved.
He urged on the Today programme: ‘All through the summer, we’ve been hearing about customers in distress, customers who are worried that they’re not able to heat their homes over this coming winter.
‘That’s why we’re saying to the Government – ‘You’ve got to take this decision to freeze prices at their current level right now’.
‘This cannot wait until the 5th or 6th of September… the Conservative Party needs to sort themselves out, decide who the leader is going to be this week.’
Beer is already predicted to approach £9 a pint next year, with industry experts warning pints could go up to £14 each in the next three years.
UK inflation will hit a staggering 18.6% at the start of next year if the huge expected hike in the energy price cap goes ahead, economists have warned.
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