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Ofgem price cap rise shows system 'failing to protect people in bills crisis'

Citizens Advice Scotland (CAS) has said the latest rise in the Ofgem energy cap is no help to people who are in crisis with their energy bills.

CAS Director of Impact David Hilferty said,

“Today’s announcement from Ofgem offers no relief as winter starts to bite. And it’s a stark reminder that the price cap is failing to protect people from energy costs that are still well above pre-crisis levels.

“Our latest evidence shows that unaffordable energy bills are entrenching harm in communities across Scotland. Over the summer, even with the warmer weather, the average energy debt brought to the Citizens Advice network was over £2,300.

“That means people trapped in debt just to live - to have warmth, light and hot food on the table. The essentials that all of us should have. 

“The energy system is broken and needs major reform – and urgently. We can’t go on tinkering with small adjustments to a dire situation that has been going on too long.

“Next week’s Budget is an opportunity for bold and far-reaching solutions that meet the scale of the crisis. This means lasting measures like a robust debt write-off scheme and an affordable social tariff that keeps bills down now and into the future.”

The latest CAS Energy brief shows that, across the Scottish CAB network between July and September (the warmest time of the year):

  • 7,500 people received energy advice from their local CAB.
  • The average level of energy debt brought to CABs remains over £2,300.  
  • Nearly a third of people (30%) seen by a CAB for energy support needed a fuel voucher.
  • The brief also contains a number of case studies from Scottish CABs (with names changed to protect privacy). e.g. 

Shilpa’s experience 

Shilpa was referred to her local CAB for advice as she had minimal funds on her pre-payment meters but wasn’t eligible for a local authority crisis grant, having received three in the past year. Having accrued debts on both the gas and electricity meters totalling £2,500, part of each top-up she made was taken towards re-payments, meaning she was left with little money to cover her usage. Shilpa has cancer and had recently left hospital; the psychological strain of living in debt was having a profound effect on her physical and mental health.