Former Energy UK boss Angela Knight warned Britain that “there is a real worry that real hardship is coming alone” due to the current cost of living crisis. In light of the warnings, the GB News host pointed out that the UK should take advantage of Brexit taxation benefits and “scrap VAT on fuel”. Despite Ms Knight considering the move as unable to successfully tackle the problem, Mr Halligan defined the strategy as “worth having” as he explained it would allow households who are struggling to save up to £100, when “paying two grand for their fuel”.
The GB News host asked: “What is your advice to Kwasi Kwarteng?
“What is your advice to Rishi Sunak and Boris Johnson?”
Ms Knight responded: “You can’t ignore this and you have to take some action.
“I suspect they may be thinking ‘well, we’ll just see how the summer goes along and see if some of the prices come down’.
“You can kind of understand that, but I do think that there is a real worry, there’s a real concern and there’s real hardship that is coming along with the big increase in energy prices but also the cost of living as well.
“So right now, my advice is to take those things off our energy bills that you do not have to levy right now.”
In light of Ms Knight’s claims, GB News host pointed out: “Scrap VAT on fuel!
“You can do it now that we have left the European Union.”
Ms Knight responded: “You can, but it is not a lot.
“Okay, you can take the VAT off, but it is not a lot.”
Mr Halligan continued: “Angela if you’re paying two grand for your fuel build and you’re struggling, it is £100. It is worth having.”
Ms Knight continued: “Everything is worth having, taking off the bill.
“The payment for the energy supplied and gone bust.
“And by the way, it’s a rather complicated thing I’d like to add-in.
“Please ask some experts on this, but electricity is charged on a pooling mechanism.
“All the generators which are asked to generate put that electricity in the pool, the pool prices struck in frequent period, and the last energy supplier is always the highest price and so really impacts the pool price.
“We have got some low price electricity generation out there, our nuclear and indeed our wind prices are down.
“It is gas that is up, so why not look at that algorithm that sets the pricing for that electricity, so you kind of start to detach away from the costs of gas from infecting everything as far as electricity is concerned.
She concluded: “Technical but well worthwhile having a look at”.