Fall in energy price cap will offer little comfort to many Scots, minister warns
The reduction in the energy price cap will bring little comfort to thousands of households in Scotland who will still face “significant hardship”, Holyrood’s Energy Secretary has said.
Neil Gray was speaking after regulator Ofgem announced its new cap on gas and electricity would reduce the average bill to £1,923 from October 1, from £2,074 per year.
The average customer with a prepayment meter should see bills fall to £1,949 per year – with these figures based on the estimate that a typical household uses 2,900 units of electricity and 12,000 units of gas.
Sam Ghibaldan, chief executive of Consumer Scotland, said: “While the lower price cap is welcome, the energy bill for a typical household will still be nearly £650 more than it was in early 2022.”
He added that “continuing high prices mean energy bills are still unaffordable” for some Scots, with Consumer Scotland highlighting the difficulties low income families and those with disabilities can face.
“Without further intervention these consumers are likely to continue to experience severe energy affordability challenges this winter,” Mr Ghibaldan warned.
The Energy Secretary said: “This small reduction will be of little comfort to the many thousands of households who continue to face significant hardship – particularly as we head into the winter months and people need a warm home most.”
He said the Scottish Government has trebled the cash available for its Fuel Insecurity Fund, with most of the money supporting those “most at risk” of self-disconnecting or limiting their power use over the winter.
Mr Gray said more action is needed from Westminster, adding: “Only the UK Government has the fiscal and policy levers with which to truly address this unacceptable situation.”
He said the Conservative Government in London must provide “meaningful, targeted support to those who will need it most”, adding reforms of the energy market are also needed to “permanently break the link between the price of electricity and the cost of gas and ensure the people of such an energy-rich nation as Scotland do not endure this situation again”.
The Scottish Federation of Housing Associations (SFHA) also called for action from the UK Government, with its chief executive Sally Thomas noting the new cap is “still markedly higher than pre-2021 rates – and far too high for too many”.
She said: “There’s no doubt that as we move into the winter months, social tenants across Scotland will struggle to afford to heat their homes or keep the lights on, which simply isn’t right.
“With previous UK Government support schemes now ended, we cannot leave people who are already struggling to stay afloat without support.
“We would urge the UK Government to reinstate immediate support as winter approaches. And we urgently need to see the introduction of a social tariff that would guarantee lower bills in the longer term for those who need it most.”