Local MP Jamie Stone urges residents to check energy tariff ahead of price cap rise
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Local MP Jamie Stone is urging residents in his Caithness, Sutherland and Easter Ross constituency to check their energy tariff to avoid bill increases in the autumn.
Energy regulator Ofgem has announced that the energy price cap is set to rise at the start of October from £1138 a year for a typical user to £1277. This could affect people on standard or default energy tariffs, but they may be able to avoid the increase if they switch to a fixed-price tariff before the end of September.
Ofgem has blamed the change on increases in wholesale energy prices.
Mr Stone is also highlighting the Warm Home Discount Scheme, which opens on October 18 and provides a £140 electricity bill credit to eligible households.
“At a time when household budgets are already stretched, this is a real blow to people in the far north who already pay disproportionately more for energy than people in other parts of Scotland," the Liberal Democrat MP said.
“I urge all households to check their current tariffs to make sure they will not be hit by this price hike in October.
“People worried about paying their fuel bill should also contact their supplier to enquire about the Warm Home Discount Scheme ahead of its launch in October.”
Ofgem says any customer "in vulnerable circumstances" or worried about paying their energy bill should contact their supplier to access the support available.
Its chief executive Jonathan Brearley said: “Higher energy bills are never welcome and the timing and size of this increase will be particularly difficult for many families still struggling with the impact of the pandemic.
“The price cap means suppliers only pass on legitimate costs of supplying energy and cannot charge more than the level of the price cap, although they can charge less.
“If you’re struggling to pay your bill you can get in touch with your supplier to access the help that’s available and, if possible, shop around for a better deal.
“We have put tough rules in place to ensure suppliers treat customers who are struggling with bills fairly, and welcome their commitment to reach out to those who most need help this winter. Where help is not forthcoming, we will not hesitate to act.
“I appreciate this is extremely difficult news for many people. My commitment to customers is that Ofgem will continue to do everything we can to ensure they are protected this winter, especially those in vulnerable circumstances.”
Ofgem adjusts the price cap twice a year based on the latest estimated costs of supplying energy.
The charity Age Scotland warned that the new price cap rise risks pushing an increasing number of older people into fuel poverty.
Age Scotland’s head of policy and communications, Adam Stachura, said: “The increase in Ofgem’s energy price cap will be a real worry for a huge number of older Scots, who even before the pandemic had trouble with being able to afford to heat their homes in the winter months.
“As people have spent an increasing amount of time at home due to lockdown restrictions, shielding and working from home, the rising cost of energy bills has become a source of great anxiety. Our latest research shows that two thirds of older people found these bills increase last year as a result, with 13 per cent struggling to pay.
“It’s worrying to hear of so many already considering taking steps to cut down on other necessities in order to be able to afford soaring energy bills, and news that bills may rise further still from October will put struggling older customers in a very precarious position.
"There must be about a million households in Scotland who are already paying too much for their energy and are stuck on the high, standard variable tariff. For the half million over-60s without the internet, finding out about new deals and switching supplier is very hard indeed.
“It’s vital that older people double check they’re not missing out on any financial support such as Pension Credit or the Warm Home Discount, or help with home insulation and draught-proofing. They can call our 0800 12 44 222 helpline to do this.
"It’s also worth finding out if you could save money by changing your energy tariff or switching supplier before the cold weather hits.”
