Energy Price Cap rise will 'pile pressure on thousands across Scotland'

Citizens Advice Scotland has said the announcement of an energy price cap rise of 2% will “pile even more pressure” on thousands of people across Scotland.

Ofgem announced the increase, which will come into place on October 1, on Wednesday.

The increase will see bills increase by around £2.93 a month for the average household, leaving a home on a default tariff paying £102 for what currently costs £100 per month.

The cap on what suppliers can charge will rise slightly from £1,720 to £1,755.

CAS Director of Impact David Hilferty described the increase as “unacceptable”.

“This new increase will pile even more pressure on the thousands of people across Scotland who are already unable to afford their energy bills”, he said.

“It will mean more people suffering the cold and going without food or warmth as we head into the winter. This is unacceptable.

“This week we published figures showing that the number of people in debt to their energy companies is higher than ever. Today’s announcement will be a further blow to those households.

“The energy market is broken and need major reform. Price cap adjustments every three months are not the solution people need.

“We need government, regulators and energy companies all to step up and urgently deliver lasting solutions like a social tariff and a robust scheme for energy debt relief. Solutions that stop people from experiencing harm.”

Latest figures show more than a third of customers (37%) are now on fixed tariffs, which means they are protected from the upcoming rise.

Jillian Edmund, energy project lead at Advice Direct Scotland, said: “A rise in the price cap from October is unwelcome news for Scottish households, especially as we move into autumn and people start to use more energy on heating their homes.

“The cost of living is still extremely high, and people are spending hundreds of pounds per year more than before the energy crisis hit, with household budgets stretched to the limit – that’s why Advice Direct Scotland is calling for a social energy tariff for vulnerable groups.

“Customers can take practical action by examining their bills, finding out how much they are paying and checking if there are cheaper options available with other suppliers.

“Taking regular meter readings and checking the level of your direct debit are as important as ever. If you have a smart meter, ensure that it is working.

“The most important thing to remember is that nobody should struggle alone, and help is available. Anyone experiencing difficulties should visit www.energyadvice.scot or call 0808 196 8660 for assistance.”