Lanarkshire households are facing a tough winter after Ofgem announced the energy price cap will rise again in October, a leading charity has warned.
Advice Direct Scotland, which runs the national energy advice service energyadvice.scot, said household budgets are under “huge pressure”.
Price cap rise details
Energy regulator Ofgem announced that the cap on what suppliers can charge will rise from £1,663 to £1,723 on October 1. This is a four per cent increase on the current level and will mean the average bill rises by £60 per year.
The policy applies to a typical annual dual-fuel bill, based on Ofgem’s updated definition of a typical consumer, which came into effect from July.
The increase accounts for the proposed removal of VAT from household electricity bills, which Prime Minister Andy Burnham said would cut around £45 from the annual cap from October. Current forecasts suggest the price cap will rise again in January.
Comparison with previous definition
Under Ofgem’s previous definition, the price cap would have risen from £1,862 to £1,935, up £73. This would have marked an £797 rise on the amount households were being charged before the energy crisis hit in the autumn of 2021.
Advice Direct Scotland is urging anyone worried about energy-related debt to contact its team of experts, who can provide free, impartial, and practical advice. It is also urging all Lanarkshire households to review how much they are paying and check whether there are better tariffs available.
Call for social energy tariff
The charity said the persistently high cost of gas and electricity underlined why the UK needs a social energy tariff, which could put the most vulnerable customers on the cheapest deals. Eligibility for such a tariff could be determined by a variety of metrics.
Craig Tobin, head of business development and impact at Advice Direct Scotland, said: “This rise in the price cap from October will cause concern for Scottish households, particularly as we move into autumn and people start to use more energy on heating their homes.
“Household budgets are under huge pressure, with this price rise adding further stress as the cost of living remains extremely high.
“People will be paying hundreds of pounds more than they were before the energy crisis hit five years ago, which is why we are calling for the introduction of a social energy tariff, which could give the most vulnerable people access to the cheapest deals.”
Tobin added: “For now, customers can take practical action by examining their bills, finding out how much they are paying, and checking if there are cheaper options available with other suppliers.
“Taking regular meter readings and checking the level of your direct debit are as important as ever. If you have a smart meter, ensure it is working.
“The most important thing to remember is that nobody should struggle alone, and help is available.
“Anyone experiencing difficulties should visit www.energyadvice.scot or call 0808 196 8660 for assistance.”
