TYPICAL fuel bills are set to rise by up to £96 a year (Regulator is slammed over energy bills hike for poorest households, February 6)!

The energy regulator Ofgem has raised the price cap for default domestic energy deals to cover the extra costs of energy suppliers. Power to the people indeed … but at what cost!

Jonathan Brearley, chief executive of the regulator, said,  “We have carefully scrutinised these changes to ensure that customers only pay a fair price for their energy.”

Oh really? The increase includes an allowance to charge every household an extra £23 a year to cover bills that have not been paid. But why should ordinary households pay for this? Private companies have shareholders to take the risks, which is an argument for them being richly rewarded in times of plenty. So why should they be protected when times are tough?

READ MORE: Ofgem slammed as energy bills to rise by £100 for 15 million UK households

This increase is due to come into effect in April, just as the Westminster government removes the £20 a week from Universal Credit that was introduced as a result of the pandemic. This, coupled with the removal of various government Covid support schemes, will push more households into fuel poverty. Power to the people… but only if you can afford it!

The Scottish Government’s Fuel Poverty Statement identifies the three main factors that contribute to increasing levels of fuel poverty. They are: household income, lack of energy efficiency and, crucially, energy prices.

The Scottish Government and the local councils have been working hard to improve household energy efficiency in an effort to remove people from fuel poverty for years now, with modest success in councils around Scotland.

Millions of pounds have been invested by the Scottish Government, via local councils and housing associations. This has helped the councils, in collaboration with local landlords, to run projects to convert inefficient electric storage heating to gas central heating, fit replacement heating systems, fit improved insulation to lofts and wall cavities as well as fitting external wall insulation.

The advantages of these improvements, however, could all be wiped out by these and any further price increases which the Scottish Government and local councils have no control over. Cue stinging criticism from opposition parties if fuel poverty targets are missed.

Scotland is a country rich in energy resources with an enviable record in transitioning to a green economy. Scotland needs to be able to take full advantage of the natural resources that surround us and use them to improve the living conditions of our citizens, rather than line the pockets of power company shareholders.

The Scottish Governments need to put the measures in place to set up a national energy company and a Scottish energy development agency, as proposed by Common Weal. Without these we are at the mercy of an energy industry set up for the benefit of the south of England. This prevents the regulatory and economic conditions necessary to act as a catalyst for building the large hydro stations Scotland needs, if we are to succeed in decarbonising our economy.

We need the powers to develop an energy industry designed for Scotland’s future, in the new world our children will inherit.

Let’s give power to the people and help them heat their homes in a Scotland run by its people and for its people and not for the benefit of the energy giants and their shareholders.

Paul Malloy
Greenock