‘Vital’ new fund as energy prices to rise

Politicians call for most vulnerable to receive help

Politicians have raised concerns as residents face a struggle to pay soaring energy bills.

Last week independent energy regulator Ofgem announced a 54 per cent energy price cap rise from April 1, with household energy bills set to rise by around £700 a year.

A local MP has written to the UK’s business secretary urging action, while one of the region’s councillors is encouraging those eligible to apply for the Home Heating Support Fund.

The increase will affect approximately 22 million UK customers.

Ochil and South Perthshire MP John Nicolson has written to Kwasi Kwarteng – the UK Government’s secretary of state for business, energy and industrial strategy – after receiving “a considerable volume of correspondence” from worried constituents.

He said one 77 year-old had been “left with little choice but to agree to an 18/24 month deal with his utility company” as he “struggled to find more affordable alternatives”, while another called for a “fairer system of energy pricing”.

In his letter, Mr Nicolson asked the UK business secretary to “take the necessary action to support vulnerable people”.

He asked Mr Kwarteng to “look again at this issue and consider introducing an emergency package of support, including a low-income energy payment, matching the Scottish Child Payment across the UK”.

Meanwhile, Perth Liberal Democrat councillor Peter Barrett – the lead for equalities on Perth and Kinross Council – is urging eligible residents to apply for the Home Heating Support Fund.

The Scottish Government fund - launched earlier this year - is administered by Advice Direct Scotland.

Cllr Barrett said: “I would urge everyone feeling the pinch to apply.

“The Home Heating Support Fund is open until March 31.

“It is designed to prevent households falling into fuel poverty and help those ‘rationing’ their energy use.”

He added: “Before the price cap was lifted almost a third of households were already rationing their energy use.

“This fund could be vital in helping people who have been hit the hardest to continue to heat their homes and feed their families.

“I want to ensure that families in Perth and Kinross struggling with their energy bills get the maximum benefit from the fund which offers payments which start at £100 rising to £500 to clear outstanding debt.

“Clearing gas and electricity debts can make a huge difference to people’s mental health and well-being.

“There is extra support available for households where one person is over 75, or they rely on electric heating, or live in a remote community.”

An Ofgem statement said: “Those on default tariffs paying by direct debit will see an increase of £693 from £1277 to £ 1971 per year (difference due to rounding). Pre-payment customers will see an increase of £708 from £1309 to £2017.”

Ofgem said the massive hike was due to an “unprecedented” rise in global gas prices over the last six months. Wholesale gas prices are said to have quadrupled in the last year.

Chief executive Jonathan Brearley explained: “We know this rise will be extremely worrying for many people, especially those who are struggling to make ends meet, and Ofgem will ensure energy companies support their customers in any way they can.

“The energy market has faced a huge challenge due to the unprecedented increase in global gas prices, a once in a 30- year event, and Ofgem’s role as energy regulator is to ensure that, under the price cap, energy companies can only charge a fair price based on the true cost of supplying electricity and gas.

“Ofgem is working to stabilise the market and over the longer term to diversify our sources of energy which will help protect customers from similar price shocks in the future.”

Cllr Barrett urged anyone struggling to pay energy bills to seek support from the fund through PKC’s Welfare Advice via 01738 476900.

Alternatively, contact Advice Direct Scotland on 0808 800 9060 or via www. advice.scot.