Ofgem energy price hike “yet another blow for struggling families” – Carmichael

Orkney and Shetland MP, Alistair Carmichael, has today responded to news from Ofgem that the price cap for energy bills is set to rise by a further 6.4% from April, an average of £111 a year for a typical user of gas and electricity, calling it “yet another blow for struggling families”. Regulator Ofgem increased the energy price cap because of higher wholesale costs and inflation.

The cap is set every three months and limits the amount suppliers can charge for each unit of gas and electricity, but not the total bill. Homes in the Northern Isles, however, are not connected to the gas grid.

Scottish Liberal Democrat research recently found that 96% of Scottish adults who are worried about the cost of heating have changed how they heat their homes this winter, to help keep bills lower. It was recently discovered that fuel poverty in Scotland is at record levels, with around 861,000 households (34%) in fuel poverty.

During the Scottish Budget process, Scottish Liberal Democrats secured the reinstatement of a winter fuel payment for pensioners in Scotland, after the UK government had taken this support away from millions of pensioners.

The Liberal Democrats are also calling for the introduction of an energy social tariff, to protect vulnerable people living in fuel poverty.

Responding to the news, Mr Carmichael said:

“This further energy price hike will be yet another blow for struggling families in the isles and across the UK. Even as we come out of the worst of winter, too many households are being forced to choose between heating and eating.

“That is another reason why I am particularly glad that Scottish Liberal Democrats prioritised securing a winter fuel payment for pensioners in the Scottish Budget after it was removed by the UK government. 

“The fact that energy prices continue to rise even as we see more and more renewables infrastructure – including in the isles – is frustrating. That is not an argument against renewables but it is an argument for proper reform of the energy market so that areas which generate renewable energy for the country as a whole see some benefit from it locally, and so that we can finally de-link electricity prices from the cost of gas. 

"We need to see greater action from both our governments to roll out insulation programmes to cut bills and to implement an energy social tariff – and to look seriously at the case for a geographic tariff for areas with high fuel poverty like the isles.”