Cut to electricity bills welcome but long term energy reform needed – Carmichael

Orkney and Shetland MP, Alistair Carmichael, has welcomed news today that typical household energy bills will fall by 7% in April according to regulator Ofgem, following changes to the energy price cap.

The average saving of £117 per household is likely to be higher in places like the Northern Isles which are off the gas grid, as the cut will be primarily applied through a lower price per unit of electricity used. This means high electricity users are likely to see the biggest benefit.

Energy prices are still about a third higher than before costs soared in 2022 following Russia’s invasion of Ukraine.

Mr Carmichael said:

“After a run of energy price cap hikes this cut to bills will be some welcome relief. That the price cut is focused on electricity bills is significant and will be a boost to islanders and others who are off the gas grid.

“Energy bills are still far higher than they were before 2022 – and far higher than is comfortable for many families – so this is really just one step towards where we need to be.

“We still need to see proper reform of the energy market to cut bills for the long term, and more targeted action to end the scourge of high fuel poverty in places like the isles, through a meaningful community benefit programme. That is exactly what the motion I passed with Liberal Democrat colleagues last weekend is all about.”