First Minister Nicola Sturgeon has spoken out about the price cap following the announcement that it will rise by 80 per cent.
This morning it was announced that energy regulator Ofgem will rise the price cap by 80 per cent, pushing up the average yearly bill to £3549 - around £295.75 per month. This will then rise again in January with experts predicting a staggering increase to £5,386.
There has been pressure for the UK Government to intervene as the cost of living payments and energy discount were established when experts believed the price cap to only rise by 42 per cent.
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In wake of this news, Nicola Sturgeon is calling for the rise to be cancelled and the price cap to be frozen in a bid to control energy bills.
Taking to Twitter she said: "This is simply unaffordable for millions. It cannot be allowed to go ahead. This rise must be cancelled, with the UK gov and energy companies then agreeing a package to fund the cost of a freeze over a longer period, coupled with fundamental reform of the energy market."
Financial advisors, Advice Direct Scotland, has warned that nearly three-quarters of Scottish households are facing fuel poverty this winter as bills are set to rise, following a report from York University.
Colin Mathieson, spokesperson for Advice Direct Scotland, said: “This latest rise will have a devastating impact on many people who are already struggling with household bills.
“We are in for an incredibly challenging period ahead, particularly with this coming at the beginning of the winter months. And, with a further increase to the price cap expected in January, it is important that people know help is available.
“Our energyadvice.scot service provides free, practical advice on the support and assistance available, such as grants.
“Experts can also help with understanding energy bills and make referrals to sources of support for those struggling to pay.
“This includes the Scottish Government’s Home Heating Support Fund, through homeheatingadvice.scot.
“We would advise anyone struggling with energy costs to reach out to their supplier, who may have a hardship fund that could help.
“Advice Direct Scotland also has a free online checker tool, which is tailored for Scotland and allows people to check they are claiming any benefits they are entitled to.”
A Government Spokesperson said: “We know people are incredibly worried about rising energy bills, following unprecedented gas prices across the continent driven by global events, including Putin’s aggression in Ukraine and his weaponisation of energy in Europe.
“Direct support will continue to reach people’s pockets in the weeks and months ahead, targeted at those who need it most like low-incomes households, pensioners and those with disabilities. As part of our £37 billion package of help for households, one in four of all UK households will see £1,200 extra support, provided in instalments across the year, and everyone will receive a £400 discount on their energy bills over winter.
“The civil service is also making the appropriate preparations in order to ensure that any additional support or commitments on cost of living can be delivered as quickly as possible when the new Prime Minister is in place.”
Jonathan Brearley, CEO of Ofgem, said: “We know the massive impact this price cap increase will have on households across Britain and the difficult decisions consumers will now have to make. I talk to customers regularly and I know that today’s news will be very worrying for many.
“The price of energy has reached record levels driven by an aggressive economic act by the Russian state. They have slowly and deliberately turned off the gas supplies to Europe causing harm to our households, businesses and wider economy. Ofgem has no choice but to reflect these cost increases in the price cap.
“The Government support package is delivering help right now, but it’s clear the new Prime Minister will need to act further to tackle the impact of the price rises that are coming in October and next year. We are working with ministers, consumer groups and industry on a set of options for the incoming Prime Minister that will require urgent action. The response will need to match the scale of the crisis we have before us. With the right support in place and with regulator, government, industry and consumers working together, we can find a way through this.”
How do you feel about the rising cost of energy? Let us know in the comments.
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