- MPs warned that the UK government needs to relook its outdated energy bill support for households and help them pay soaring energy bills.
- According to the BEIS committee, a national home insulation programme should be launched urgently, subsidize energy costs for the most vulnerable, and the energy price cap should be replaced with a social tariff.
The UK government needs to immediately relook its outdated energy bill support for households, warning that at this rate, millions will be plunged into unmanageable debt. With the winter coming, soaring inflation and the cost-of-living crisis have hit the citizens hard. Besides, with Russia once again deciding to cut gas supplies to Europe through the Nord Stream pipeline, it could further create headaches for the region.
According to a recent report by the Business, Energy, and Industrial Strategy (BEIS) committee, a national home insulation programme should be launched immediately and offer energy at a subsidised cost to the most vulnerable. BEIS also suggested keeping a social tariff cap on the energy prices instead of an energy cap.
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The committee added that a £15-billion support package announced by former chancellor Rishi Sunak in May for the cost-of-living crisis includes a £650 means-tested one-off payment to low-income households and a £400 discount on energy bills in October. The support consists of £300 payment to pensioners and £150 to disable people.
With the inflation hitting decades high in June, the energy price cap is now forecasted to hit around £3,244, up from the £2,800 previous forecast when the next price cap takes effect in October. It means that within a year, bills have soared by £2,000, far below the £1,200 support package for most vulnerable households.
Around 30 UK energy suppliers failed last year. And partial costs of this collapse have been spread across households, which is expected to add another £94 to their energy bills.
Let’s explore these 3 FTSE-listed energy stocks to watch out for.
National Grid Plc (LON: NG.)
The FTSE100 listed UK-based energy utility firm, National Grid Plc, as of 26 July, held a market cap of £40,475.31 million. The shares of National Grid have witnessed a growth of 19.15% over the last 12 months. The YTD returns to have witnessed growth of 4.50%. National Grid Plc’s shares were up by 0.05% and were trading at GBX 1,060.00, as of 8:15 AM (GMT+1). With a P/E ratio of 18.48, the company offers an annual dividend yield of 4.6%.
Centrica Plc (LON: CNA)
Centrica Plc as of 26 July held a market cap of £5224.65 million with its share value appreciating by 84.93% over the last 12 months. The YTD returns have been fruitful as they stood at 24.25%. With a price-to-earnings (P/E) ratio of 17.67, Centrica Plc’s shares were trading up by 0.45% at GBX 88.84 as of 8:20 AM (GMT+1).
SSE Plc (LON: SSE)
The multinational electricity network company, SSE Plc, operates through segments including SSE Renewables, SSE Thermal, SSEN Transmission, SSEN Distribution, etc. As of 26 July, the company holds a market cap of £18,577.67 million, and its share value has appreciated with its YTD return of 6.45%. The FTSE 100-listed company’s shares were down by 0.32% and were trading at GBX 1,734.50 as of 8:30 AM (GMT+1).
Note: The above content constitutes a very preliminary observation or view based on market trends and is of limited scope without any in-depth fundamental valuation or technical analysis. Any interest in stocks or sectors should be thoroughly evaluated taking into consideration the associated risks.