Scottish Government renews call for energy devolution as prices set to rise further
THE SCOTTISH Government has urged the UK Government to take “urgent and meaningful action” to reduce high energy bills.
The call from first minister John Swinney comes on the same day energy regulator Ofgem announced that the price cap for energy will rise by four per cent from October.
The increase to the highest level in four years will almost completely wipe out the five per cent cut to VAT on electricity bills which new prime minister Andy Burnham announced on one of the first days of his premiership.
People on fixed tariffs will not pay more for their energy from October.
The price cap, as set out in law, puts a maximum per unit price on energy that reflects what it costs to buy energy on the wholesale market and supply it to homes.
The price cap does not limit a total bill, which will vary depending on how much energy a person uses.
The UK Government said the latest energy cap increase was driven by higher wholesale gas prices due to the war in Iran.
Energy secretary Miatta Fahnbulleh said the cost of energy was not driven up by the move to renewable energy.
It comes just days after community councils in Shetland joined a national campaign calling for a moratorium on new energy developments in Scotland until a more cohesive national plan has been put in place.
This call has so far been dismissed by the SNP government, which instead has called on the UK Government to devolve energy powers to Scotland to allow the Scottish Government to do more to help people with the cost of living.
Swinney said: “The UK Government came to office promising to cut people’s bills by £300, yet bills are already more than £250 higher – and they are going to increase further as we head into winter.
“Here in Scotland, our support has saved thousands of households between an estimated £300 and £500 a year. That is evidence of how we are using our limited powers to help where we can by investing in more energy efficient homes, tackling fuel poverty and meeting our ambitious climate change targets.
“The UK Government must show it can match this ambition by providing immediate assistance.
“Scotland is an energy rich country, so households should not be worrying about their bills – urgent and meaningful action is needed now.
“It is clear to me that we need full control over Scotland’s energy resources so we can bring down bills and help people with the cost of living.”
Anyone struggling with electricity bills can receive support at Shetland Citizens Advice Bureau. It can be contacted on 01595 694696 or by email through its website.
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