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Evening Standard
Evening Standard
Politics
Craig Paton

Energy price cap increase ‘indefensible’, says Swinney

The latest increase to the energy price cap is “indefensible”, Scotland’s First Minister has said.

Energy regulator Ofgem announced on Wednesday the cap will increase by 2% on October 1, adding around £2.93 per month for the average household.

The increase continues a trend of cost rises since the Russian invasion of Ukraine spiked wholesale gas prices, despite pledges from the UK Government that bills would come down.

In response to the latest rise, John Swinney said in a video posted on X: “Energy bills are already far too high, yet under Labour they’re going up again.

“When Labour came to power, they said they’d lower energy bills, but after today’s increase energy bills are going to be about £187 higher than when Labour came to power.

“In energy-rich Scotland, that is indefensible.

“The only way to lower energy bills for good is with independence.”

The Scottish Greens also weighed in, with outgoing co-leader Patrick Harvie saying people across the UK are being “plunged into poverty by a broken energy market”.

He added: “Scotland has renewable resources that any country would envy, but bill payers are not seeing the benefit of them.

“We urgently need to break the link between global gas prices and household bills. Renewables are the cheapest energy to generate, and this would make them cheap to use, which is both fairer and greener.”

Citizens Advice Scotland said the latest rise will heap more pressure on families, who the charity found earlier this week are struggling with energy debt more than ever.

David Hilferty, its director of impact, said: “This new increase will pile even more pressure on the thousands of people across Scotland who are already unable to afford their energy bills.

“It will mean more people suffering the cold and going without food or warmth as we head into the winter. This is unacceptable.

“This week we published figures showing that the number of people in debt to their energy companies is higher than ever.

“Today’s announcement will be a further blow to those households.

“The energy market is broken and needs major reform. Price cap adjustments every three months are not the solution people need.

“We need Government, regulators and energy companies all to step up and urgently deliver lasting solutions, like a social tariff and a robust scheme for energy debt relief. Solutions that stop people from experiencing harm.”

Friends of the Earth Scotland pointed the finger at the continued use of fossil fuels.

Its oil and gas campaign manager, Rosie Hampton, said: “Families across Scotland will be worried about yet another increase in bills which have been driven higher in recent years by the global price of gas. Fossil fuels are costing us the earth.

“Millions of people are trapped in leaky homes and in an energy system that only works for the huge energy companies who own and control it.

“The sure-fire way to bring down bills is a mass programme of home energy efficiency and powering our lives with affordable renewable energy that is run in the public interest.”

Advice Direct Scotland’s energy project lead Jillian Edmund said the news will be “unwelcome” for families in Scotland, with the organisation saying the cap has risen by £617 since the energy crisis hit in late 2021.

UK energy minister Michael Shanks accepted that “any price rise is a concern for families”.

He added: “Wholesale gas prices remain 75% above their levels before Russia invaded Ukraine. That is the fossil fuel penalty being paid by families, businesses and our economy.

“That is why the only answer for Britain is this Government’s mission to get us off the roller-coaster of fossil fuel prices and on to clean, homegrown power we control, to bring down bills for good.

“At the same time, we are determined to take urgent action to support vulnerable families this winter. That includes expanding the £150 Warm Home Discount to 2.7 million more households and stepping up our overhaul of the energy system to increase protections for customers.”

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