Challenging winter for consumers after price cap rise

Consumer Scotland Head of Energy Kate Morrison comments on latest Ofgem announcement.

Energy regulator Ofgem has announced that the annual energy bill for a typical household will rise to £1,738 in January - an increase of £21 or 1.2%.

Consumer Scotland Head of Energy Kate Morrison said:

“Although lower than at the peak of the energy crisis, energy bills are still historically high and will rise further in January.

“One of the legacies of the past two years of high bills has been a growth of energy debt and arrears in the GB domestic market which now exceeds £3.6bn – a record high – and bill increases will impact further on levels of debt

“This will be a challenging winter for consumers, particularly those with higher energy needs including disabled people and those with health conditions.

“There is a need for governments to design and deliver better targeted energy affordability support for consumers, particularly given current levels of debt and ongoing pressure on household budgets.”

Background

Findings from Consumer Scotland’s Energy Affordability Tracker showed 9% of consumers reported being in energy debt. Risk factors most associated with energy indebtedness are having a disability that limits a lot, having a health condition, and having a child under 5 in the household.

Consumers struggling with their energy bills should contact Advice Direct Scotland which provides free advice on the financial support available from Monday to Friday between 9am and 5pm. Their advice line is 0808 196 8660.

Consumer Scotland is the statutory body for consumers in Scotland which was established by the Consumer Scotland Act 2020.