Windsor MP says most will be ‘protected against excessive bills’
WINDSOR MP Adam Afriyie speaks this week about rising gas prices and their real impact. He writes;
This week has seen a considerable amount of attention directed towards gas prices. This has a whole series of ripple effects across the country and many production sectors. While the headlines can be alarming, it shouldn’t be of great concern to too many people.
The most obvious concern will be the increase in energy bills. Obviously, if the prices stay high, eventually they will hit us all. In the short term, most customers will have adequate protection against any sudden price spikes if they charge fixed rate tariffs. Many others on variable rates, or between contracts, will also be immune to any exorbitant increase in bills. This is because government price caps will help protect people from fraudulent energy prices by limiting the amount energy companies can charge you. If your energy supplier is a small business, there is of course a risk of your energy supplier going bankrupt. However, this also shouldn’t be a cause for concern as you will simply be automatically transferred to a more reliable supplier – with no disruption in supply.
So why have the prices increased this way? We appear to be in the midst of “perfect storm” conditions in the wholesale gas market. These conditions include lower gas extraction rates around the world, less wind which has reduced our supply of wind power, increased demand after the end of the pandemic, and the maintenance of offshore oil rigs from around the world. North delayed compared to last year.
Normally, any one of these issues alone is unlikely to cause price spikes and supply chain issues on this scale. However, together they would put our energy grid and our supply chain under extreme pressure.
The Prime Minister reiterated that these pressures will be temporary in nature – thank goodness – so I urge everyone not to panic and just sit back.