Tackling the energy cost crisis

The First Minister has convened a second summit with energy companies and advice organisations.

Further actions to support consumers and businesses through the winter have been agreed at yesterday’s virtual summit between energy companies and advice organisations and Ministers.

The energy cost crisis summit discussed this week’s reversals to UK Government measures set out since the previous summit, and agreed longer-term certainty is urgently needed ahead of the anticipated energy price cap increase, currently due in April.

First Minister Nicola Sturgeon said: “The curtailing of the Energy Price Guarantee by the Chancellor of the Exchequer earlier this week has eradicated what meagre certainty people and businesses had over their bills and finances in the short to medium-term.

“Even the current cap of £2,500 until April – while better than a rise to £3,500 – is still a very significant increase for households who are already struggling to pay their bills and heat their homes. Without further mitigation the increase to £2,500 under the Energy Price Guarantee will see an additional 150,000 households in extreme fuel poverty.

“The deficiencies in the UK Government’s package mean we are still in an emergency situation. The economic outlook has been made far worse by other aspects of the mini-budget – most of which have now had to be reversed entirely.

“The Scottish Government is working hard within its limited powers and finite budget to support people, business, public services and the economy. Part of that work will involve ongoing engagement with energy companies and advice organisations throughout the winter to see how, individually and collectively, we can alleviate the huge challenges people are facing as well as signposting existing schemes and support that is available.

“It is clear however that more substantial reform of the energy market is needed to address the issue in the long term, and the power to do so lies with the UK Government.”

And therein lies the problem – Ed.

Scottish Energy Retail Summit: update on collaborative action – gov.scot (www.gov.scot)