Thousands of Renfrewshire residents are facing a steep rise on their energy bills after regulator Ofgem announced a 54 per cent rise in the energy price cap.
It means energy prices will rise by £693 a year for millions of households after regulator Ofgem hiked the price cap on bills to £1,971 or 54 per cent.
The energy regulator is responsible for the energy price cap which limits how much providers can charge customers on their energy bills.
The increase follows a 12 per cent rise in October and will take effect from April.
Soaring energy bills are the key factor in what the Resolution Foundation think-tank has described as a “cost of living catastrophe” facing people across the UK this year.
Jonathan Brearley, chief executive of Ofgem, said: “We know this rise will be extremely worrying for many people, especially those who are struggling to make ends meet, and we will ensure energy companies support their customers in any way they can.”
Ofgem said the increase is driven by a record rise in global gas prices over the last 6 months, with wholesale prices quadrupling in the last year.
Andrew Bartlett, chief executive of Advice Direct Scotland, said: “This sharp rise will be a devastating blow for many households across Scotland.
“It will cause deep anxiety and financial worries, leaving many people facing the stark choice of heating or eating.
“But Scots don’t have to struggle alone – free, impartial and practical advice is available to everyone in Scotland through our energyadvice.scot service.
“And charities and organisations in Scotland which provide debt, money or energy advice can sign up at homeheatingadvice.scot as a ‘referral partner’ to access a £3m Scottish Government fund for those in fuel poverty or rationing their energy use.”
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Chancellor Rishi Sunak has announced a council tax rebate to ease the pressure of rising bills on consumers, who also face high inflation and a tax rise.
Mr Sunak said households in council tax bands A to D would receive £150 back in April to offset the huge cost of living squeeze that will take hold then.
Along with the price cap rise from April 1, taxpayers will be hit that month by the 1.25 per cent National Insurance hike and inflation is forecast to be higher.
Mr Sunak said the council tax rebate was designed to help people on middle-incomes as well as the poorest and that around 80 per cent of homes in England would benefit.
The response in the energy sector was critical to early reports of the plan, with the boss of supplier Ecotricity calling the measures “far too little, far too late”.
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