Miatta Fahnbulleh is exploring a rising block tariff to make energy bills fairer, but the idea is being criticised as complicated and possibly counterproductive. Industry expects bills to rise by about £400 a year from January.
01Summary
- 01Energy secretary Miatta Fahnbulleh has asked officials to look at a rising block tariff model for household energy bills.
- 02Under the model, households would get a cheaper initial block of gas and electricity, then pay more for extra units used.
- 03Industry projections suggest annual bills could rise by about £400 from January, with high costs likely to persist through the decade.
- 04The Joseph Rowntree Foundation backs the idea, saying it could reduce bills more for lower-income households.
- 05Citizens Advice, Electrify Britain and other critics say the policy is hard to administer and could undermine electrification and flexible tariffs.
02Why it matters
The debate matters because household energy bills are expected to rise again, and any change in pricing could affect who pays most. It also shapes how the UK funds the energy transition and supports poorer households.
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