Help on hand for energy price cap increase
Scottish households are facing a tough winter after Ofgem announced the energy price cap will rise again in October, a leading charity has warned.
Advice Direct Scotland, which runs the national energy advice service energyadvice.scot, said household budgets are under “huge pressure”. Energy regulator Ofgem has announced that the cap on what suppliers can charge will rise from £1,663 to £1,723 on October 1. This is a 4% increase on the current level and will mean the average bill rises by £60 per year.
The policy applies to a typical annual dual-fuel bill, based on Ofgem’s updated definition of a typical consumer, which came into effect from July.
The increase accounts for the proposed removal of VAT from household electricity bills, which Prime Minister Andy Burnham said would cut around £45 from the annual cap from October.
Current forecasts suggest the price cap will rise again in January.
Under Ofgem’s previous definition, the price cap would have risen from £1,862 to £1,935, up £73. This would have marked a £797 rise on the amount households were being charged before the energy crisis hit in the autumn of 2021. Advice Direct Scotland is urging anyone worried about energy-related debt to contact its team of experts, who can provide free, impartial, and practical advice
It is also urging all households to review how much they are paying and check whether there are better tariffs available.
The charity said the persistently high cost of gas and electricity underlined why the UK needs a social energy tariff, which could put the most vulnerable customers on the cheapest deals.
Craig Tobin, head of business development and impact, said: “Household budgets are under huge pressure, with this price rise adding further stress as the cost of living remains extremely high. “For now, customers 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. The important thing to remember is that nobody should struggle alone. Anyone experiencing difficulties should visit www.energyadvice.scot or call 0808 196 8660.”