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Daily Record
Daily Record
National
Emylie Howie

Energy price cap to rise by £830 slammed by Renfrewshire MP

Energy prices could rise to nearly £3,000 a year from October this year.

An energy price cap “in the region of £2,800” is expected in October, Ofgem chief executive Jonathan Brearley told MPs.

And Gavin Newlands MP has slammed the UK Government for not doing more to help people facing the biggest cost-of-living crisis since the 1970s.

The forecast increase will mean the energy price cap has risen by 119 per cent in the space of a year, from £1,277 to £2,800.

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The Ofgem chief admitted as many as 12 million households across the UK could be plunged into fuel poverty – defined as spending more than ten per cent of income on home energy – if the rise goes ahead.

So far, UK Government help with fuel bills has been limited to a compulsory £150 loan for electricity customers, to be repaid on electric bills over the next five years.

Other European countries have provided direct support to customers feeling the pinch, with France capping price increases completely.

Mr Newlands, MP for Paisley and Renfrewshire North, called for urgent action to protect households from the price rises.

He said: “This latest announcement of yet more extortionate price rises is more evidence of complete market failure under the watch of both the UK Government and the supposed regulator.

“In the space of a year households will see their energy costs more than double, yet the only help they’ve seen from the UK Government is a compulsory loan which will increase their electric bills even further for the next five years.

“Put quite simply, both government and regulator have plunged millions of households into fuel poverty through their inaction, incompetence, and inertia.

“Virtually every other country in Europe is providing direct help to consumers and households to reduce the overall cost of energy, and France has capped rates completely. In the UK all we’ve had is a forced loan added to our electric bills for the next five years. What use is that next year when bills are completely unaffordable?

“If the UK Government doesn’t take action now, millions will be forced to endure the worst winter since the 1970s and many more will have to choose between heating and eating. In a wealthy country such as ours, that is an utter disgrace.

The Age Scotland charity has warned that, without sufficient preventative action, hundreds of thousands of older people will be at further risk of being pushed into poverty.

Chief executive Brian Sloan said: “This projected increase is jaw dropping and would be nothing short of catastrophic for older people. “Not to mention the fact it is expected to hit at the worst possible time of year as we head into the colder, darker months.”

Ofgem’s prediction is steeper than April’s price cap increase of £693 a year to £1,971 for those on default tariffs paying by direct debit for the average household.

Andrew Bartlett, chief executive of Advice Direct Scotland, said: “This prediction will be devastating for households across Scotland.

“Many are already struggling with huge rises in recent months, pushing them into debt and financial hardship.

“The prospect of bills rising so steeply this autumn means that some households will face the stark choice of heating or eating.

“Our advisers are dealing with a growing number of queries and helping thousands of people, and we urge Scots not to struggle alone.

“Free, impartial and practical advice is available to everyone in Scotland through our energyadvice.scot service.”

energyadvice.scot is available at www.energyadvice.scot and on freephone 0808 196 8660, Monday to Friday, 9am to 5pm.

You can also find out more at www.age.scot/energy or call the free helpline on 0800 12 44 222.

Download the FREE Renfrewshire Live app now for all the latest news, features and sport in your area. Available on both Android and Apple. Download here: smarturl.it/RenfrewLiveSocial

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