A protest group calling for a cut to energy prices and an end to late payment fees gathered outside the offices of Scottish Power in Glasgow today. Power to the People (PttP) assembled in front of the energy firm's Charing Cross headquarters despite near-freezing temperatures to call for energy firms to do more to support people during the cost-of-living crisis.
The group, linked to union-backed protest movement Enough Is Enough, also wants suppliers to end the forced installation of expensive pre-payment meters when people build up too much debt. Politicians, academics and campaigners are among those who have gathered outside the HQ on St Vincent Street.
The group marched through the city centre as part of their demonstration, which targets energy firms as well as regulator Ofgem, which it has accused of allowing the "destruction of lives" through lacklustre oversight of the industry.
Last month, Ofgem announced that the energy price cap for a typical household would rise to 20 per cent from £4,279 from £3,549. However, the UK Government's Energy Price Guarantee has frozen prices at an average of £2,500 until March 2023, rising to £3,000 from April, funded by a 35 per cent windfall tax on energy producers.
Matt Kerr, a Labour councillor in Glasgow, said of the protest: “We’re coming together tomorrow to show that we are not going away, and haven’t been bought off by any phoney ‘price freeze’. We refuse to accept that energy company CEOs can continue to profit from poverty through penalty charges."
Scottish Power is among a cohort of energy firms boasting gargantuan profits from the first six months of 2022, announcing in September that it had made £924million over and above its operating costs in that time. The firm is owned by Spanish energy giant Iberdrola.
It was strongly criticised earlier this year after introducing additional late payment charges, despite global supply prices and the Ukraine crisis causing fuel bills to surge. Any Scottish Power customers who pay 14 days late will be charged an extra £10, and a further £20 if the bill isn't paid for 28 days.
It also charges hard-up Scots £33.28 if they need to pass the bill to debt collectors or doorstep them to demand payment – and £150 if they need to apply for a warrant to fit a prepayment meter in the event outstanding bills aren't paid. At around the same time that the fees were introduced, Scottish Power boss Keith Anderson had called for "targeted" support for those struggling with their bills.
Former Scottish Socialist MSP Frances Curran said energy companies had "stolen Christmas", adding: "If they had any heart this winter they would cancel the bogus late payment charges. Like Scrooge, they will be rubbing their hands and racking up the profits."
Energy UK, an umbrella body representing the UK's energy firms, told the Record that suppliers were committed to supporting people in dire straits, but added that suppliers needed to recoup their costs to avoid going under, as 30 firms did in 2021.
A spokesperson said: “Energy suppliers continue to offer a range of financial and other support to help customers struggling to pay their bills. This includes operating their own support funds, training and increasing the number of frontline advisors to help them identify and support vulnerable customers and partnering with charities and consumer groups to supplement these efforts.
"Anyone struggling with their bills should contact their supplier to see what help might be available. Suppliers are required to have exhausted all other options and followed a series of checks before installing a prepayment meter by warrant.
"There are difficult decisions around indebted customers as suppliers are also required to try and prevent them falling further into arrears and given that any increase in bad debt will ultimately have to be recouped from customers’ bills.”
An Ofgem spokesperson said: "Ofgem’s priority is to protect consumers and we know that people are currently under huge pressure as bills continue to rise. We will keep working closely with the Government, consumer groups and with energy companies on what further support can be provided to help with these higher prices.”
The Record has contacted Scottish Power for comment.
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