Regulator Ofgem today announced that the typical household energy bill will hit £3,549 a year from October 1. This is a huge increase on the current energy cap of £1,971 for the average household.
The energy cap limits how much providers can charge customers in Scotland, England and Wales. The price of electricity will rise on average from 28p per kWh to 52p in October-December and gas will go up from 7p to 15p per kwh.
Scottish Power is advising its customers that there is help available for people who are struggling to pay their energy bills. This includes the Warm Home Discount Scheme and the Hardship Fund.
Read more: British Gas offering £1500 off energy bills to customers from different suppliers
Why is the energy cap rising so much?
Energy prices are rocketing across the world due to a number of factors. Russia's illegal invasion of Ukraine has put prices up due to the soaring cost of their gas which is exported across the world.
A long winter in Asia and Europe last year and countries emerging from the covid pandemic led to higher energy use internationally. It meant stocks were used up faster than normal which has hit consumers.
What is Scottish Power’s response?
Scottish Power is pointing people to various ways they can get help with rising bills. These include:
- Managing your direct debits so that you don't build up a deficit
- Installing a free Smart Meter
- Activating emergency credits if you need to
- Accessing the Warm Home Discount Scheme – this is a programme of support aimed at customers who are living in, or are at risk of, fuel poverty. Some customers will qualify automatically for a rebate and will receive a letter from the Department of Work and Pensions telling them this. Other customers can apply for a rebate if they meet the eligibility criteria. The new scheme will launch in Autumn 2022.
- Accessing the Hardship Fund – if you’re on a lower income and are struggling to pay your energy bills, you may be eligible for the ScottishPower Hardship Fund. You can apply by calling StepChange Debt Charity or any other debt advice agency.
What else is Scottish Power doing?
The boss of Scottish Power has proposed to the UK government that the energy price cap should be held for the next two years. Chief executive Keith Anderson presented the plans this week to Business Secretary Kwasi Kwarteng.
The plan would cost £100bn – the figure is Scottish Power's best estimate of the difference between what it will actually cost to buy the energy and the current price cap. The so-called deficit fund would be repaid through bills over the next 20 or so years.
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