Price cap rise is ‘heaping more debt’ on people
Scotland’s national energy advice service has said that persistently high gas and electricity costs are “heaping more debt on to people who cannot afford it”.
Families already struggling will face a fresh financial shock after Ofgem confirmed that the energy price cap is due to rise again in April, from £1738 to £1849 from April 1.
This is a 6.4% increase on the current level and will see the average bill rise by £111 per year. Forecasts suggest the price cap will fall in July, before rising again in October. The new price cap is £711 more than before the energy crisis hit in the autumn of 2021, an increase of 62%.
Advice Direct Scotland, which runs energyadvice.scot, is urging anyone worried about energy-related debt to contact its team of experts, who can provide free, impartial, and practical advice.
The charity said the persistently high cost of gas and electricity underlined why the UK needs a social energy tariff, which would automatically put the most vulnerable customers on the cheapest deals.
It has been campaigning for more than a year for the UK Government to work with energy suppliers to introduce the policy, and is contributing to a working group set up by the Scottish Government on the issue. Eligibility for such a tariff could be determined by factors such as receipt of benefits or low incomes.
Conor Forbes, policy director, said: “People are paying hundreds of pounds per year more than they were before the energy crisis hit, and this situation simply cannot continue. This is why we have been calling for a UK-wide social energy tariff, which would go some way to fixing the country’s broken energy market and lifting people out of fuel poverty.
“For now, people can take practical action by examining their bills, finding out how much they are paying and checking if there are cheaper options available with other suppliers. Taking regular meter readings and checking the level of your direct debit are as important as ever. If you have a smart meter, ensure that it is working.
“The most important thing to remember is that nobody should struggle alone. Anyone experiencing difficulties should visit www.energyadvice.scot or call 0808 196 8660 for assistance.”