Consumers facing further rise in energy costs after price cap increase

Consumer Scotland comments on latest Ofgem announcement.

Energy regulator Ofgem has announced the annual energy bill for a typical household will rise to £1,849 from April - an increase of £111 or 6.4%.

Consumer Scotland Director of Policy and Advocacy Douglas White said:

“Energy costs are already historically high and prices will rise further in April – the third increase in a row.

“This latest rise comes after another challenging winter for consumers - particularly those with higher energy needs including disabled people and those with health conditions.

“One of the legacies of the past three years of high bills has been a growth of energy debt and arrears in the GB domestic market which now exceeds £3.8bn – a record high – and bill increases will impact further on levels of debt.

“Bill increases and unsustainable levels of debt underline the urgent need for reform so that affordability support reaches those who need it.”

Background

Findings from Consumer Scotland’s previous 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.