The UK energy secretary is flirting with a bad idea for bills – the ‘rising block tariff’
There are many reasons to ignore this affordability ‘solution’, not least it being complex and fiddly. Just keep things simple “My mark of failure or success is whether I can get bills down or not. That’s the only thing I’m in this job to do.” So said Miatta Fahnbulleh, the energy secretary, recently , bracing for the hike in energy bills that looks inevitable in January. Industry projections…
Energy Secretary Miatta Fahnbulleh has floated the concept of a "rising block tariff" as a potential solution to make energy bills more affordable. This idea proposes a system where households receive an initial block of cheaper gas and electricity for essential use, with subsequent blocks becoming progressively more expensive. However, there are several concerns surrounding this proposal.
First, Citizens Advice argues that low energy use is not a reliable indicator of low income, as traditional electric heaters, which consume more electricity, are often found in low-income households. Second, a rigid RBT could conflict with the growing number of renewable energy sources, such as wind and solar power, which can lead to cheaper rates during periods of high output.
Additionally, an RBT may hinder the adoption of electric vehicles and energy-efficient technologies, as it would discourage consumers from using more electricity. Fahnbulleh's officials have explored the RBT model, and even the New Economics Foundation and Joseph Rowntree Foundation have expressed support for the idea. However, the complexity and administrative challenges of implementing such a system make it an unappealing option for the Secretary of State, who emphasizes simplicity and the primary goal of reducing energy bills.
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