CAMPAGINERS have claimed that the latest energy price forecasts show customers are being "gaslit" by the energy industry.
It comes after confirmation that UK Energy Secretary, Ed Miliband, wrote to energy regulator Ofgem, urging them to act as Treasury estimates forecast energy bills could be set to soar by over £100 a year in April.
Campaigners say at the heart of the scandal is the system that sees electricity prices being set by the cost of gas, which is up to 40% of the time under the marginal pricing rules.
With the cost of gas rising to a two-year high in recent weeks, the over reliance on fossil fuels in the country’s energy system is again causing distress in households.
Warm This Winter spokesperson Caroline Simpson said: “It’s soul destroying that there will be another price cap rise. What billpayers don't know is that even their electricity bills are chained to gas prices. This over reliance on gas – both for our heating and in setting the electricity price – is why we saw huge hikes in bills four years ago and now we are seeing prices set to rise again.
“Instead, the public are being told by some politicians that net zero and green policies are to blame which couldn’t be further from the truth and we need to stop gaslighting people.
“Our bills are high and the ones who benefit are greedy gas and oil companies who are making billions. That is why we desperately need to develop our own renewable energy sources as the only way to achieve lower prices and energy security for good.”
Analysts predict the price cap is set to rise yet again in April when Ofgem makes their announcement a week on Tuesday (February 25), and that is because it is linked to the current gas price surge driven by the conflict in Ukraine, a colder than expected European winter and city market traders who buy and sell gas to desperate countries.
Friends of the Earth Scotland’s oil and gas campaigner Freya Aitchison said fossil fuels are "costing us the earth" while companies are "raking in billions in profits", but one third of Scottish homes are in fuel poverty.
She said: "The public are paying twice for the greed of fossil fuel companies, once in ever increasing energy bills and again in the climate damage caused by burning oil and gas. Politicians must be willing to rebuild this energy system which is controlled by companies who are raking in billions in profits whilst one third of Scottish homes are in fuel poverty. “Plans for new fossil fuel projects like the gas burning power station at Peterhead or the Rosebank oil field will leave us all more vulnerable to the international price shocks like we have suffered in recent years. The sure-fire way to bring down bills for good is through a fair and fast transition to using affordable renewable energy to power our lives and a mass programme of home energy efficiency.”
Simon Francis, co-ordinator of the End Fuel Poverty Coalition, said: "As volatile energy bills continue to be set by our reliance on global wholesale markets and driven by the cost of gas, it is even more vital that we see moves toward sustainable, cheaper, renewable energy.
"This of course needs to be combined with investment in helping people make their homes more energy efficient - especially those living in low quality private rented homes.
"But until then consumers need to navigate a confusing array of energy tariffs. The key point to remember is to use your own energy usage when comparing prices and do not rely on industry averages which may hide the true cost you will pay.
"Customers must also look out for exit fees which may trap you into uncompetitive tariffs in the future. And, if a household is interested in moving to a 'tracker' style tariff, it is even more important to make sure you look at your own usage, the unit costs and the standing charges and check that they will offer you real value for money."
Dale Vince, green industrialist and founder of Ecotricity said: “The energy price cap goes up again next week -–but there’s nothing Ofgem can do about that. It’s the Government that needs to take urgent action – we need reform of the energy market. "Three reforms could halve the nation’s energy bills – break the link between the price of gas and power, cap profits from North Sea gas and from the regional grids, as we already do with retail profits.
"This is the urgent action we need, from our government so that we can get ourselves off the global energy price rollercoaster and deliver the benefits of energy independence”.
