A Callander man this week spoke of his shock on being offered a fixed-rate energy deal which has more than trebled in price.
Graeme Shepherd, who lives in a detached house in the town’s Aveland Park Road, is currently on a fixed rate dual fuel contract of £185 per month which is due to come to an end next month.
His supplier Octopus Energy offered him a new one-year fixed rate, dual tariff electricity and gas, monthly deal of £573.82 as a loyal customer.
The provider’s standard 12-month fixed rate is £699.33.
Energy companies have pointed out in recent months that the hike in wholesale gas and electricity prices is set to continue following pressures on supplies.
In late December a new record was reached when wholesale gas prices climbed to 450p per therm.
A new price cap, setting the maximum rate that energy companies can charge for a default tariff, to be announced next month, will come into effect in April. It currently stands at £1277, but is expected to rise, with some in the industry predicting it will hit £2000 by October.
Seventy-year-old Mr Shepherd has been a customer with renewable energy specialist Octopus Energy for at least the last four years.
He also runs the Ashwood House Apartments self-catering accommodation at his home which comprises two flats.
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The retired seafarer told the Observer he was alarmed at the price hike.
He said: “I knew prices would rise, but I didn’t expect it to be quite so high. It came as a big shock to be honest.
“I am fortunate in that I have a good pension and will be able to pay these increased fuel bills, although I will still have to cut down on gas and electricity use and will shop around for a better deal if I can, but having looked at a comparison website, Scottish Power’s dual fuel tariff is almost the same at £575 per month.
“It doesn’t matter how small or large your home, these bills are coming.
“There will be many who simply cannot afford to pay heating bills which have doubled, or in my case more than trebled.
“I want people to know that this is what is going to happen in the months ahead. Many will not be able to cope financially with such a rise in energy prices.
“It’s very worrying.”
An Octopus Energy spokesperson said this week: “Energy prices are higher than they’ve ever been right now (and not from companies overcharging) because the cost to suppliers like us of buying gas and electricity in the global markets has increased by 300 per cent since this time last year.
“This volatility is driven by unusual Covid-related trends in the supply and demand of gas around the world (economies closing down due to Covid, and then coming back fast, for example), and partly by the UK’s dependence on gas imported from Russia.
“We’re always trying to keep energy prices as low as possible for our customers and have always been the last large energy supplier to increase prices.
“While we are 100 per cent hedged (which means we buy all the energy for our customers when they enter a contract with us), we have to buy the energy for contracts that get renewed at current wholesale costs. To reflect those costs, we unfortunately have to increase prices for renewed contracts like Mr. Shepherd’s.”
The Octopus spokesperson added: “Our team talk to 30,000 customers a day and we know how incredibly hard it is for people right now, so there are several things we do to help customers in difficulty this winter.
“We’ve set up a £2.5m Octopus Assistance Fund which customers can apply for help from. It’s accessed via a quick and simple online tool which asks customers a series of questions about their financial situation.
“We can then offer a number of support options based on circumstances and need, including access to existing schemes, monetary credits from the fund, energy efficiency guidance, including the free loan of thermal imaging cameras, personalised account guidance and support.”
For details on the assistance fund, email hello@octopus.energy.
