SNP MSP for Na h-Eileanan an Iar, Alasdair Allan, has joined party colleagues in calling on the UK Labour Government to ‘step in’ and take action to actually reduce household energy bills.

This comes as Ofgem launches yet another consultation on standing charges, but its proposals fail to guarantee any significant reduction in bills. Campaigners responded that Ofgem has ‘picked an easy route to appease suppliers’ concerns that doesn’t help the most vulnerable’. Meanwhile, prominent cost of living campaigner Martin Lewis has described energy standing charges as a ‘poll tax’, with people currently paying more than £300 a year just for the facility of having gas & electricity, and has called the overnight Ofgem announcement ‘disappointing’.

Before the election, the Labour Party promised to cut energy bills by £300, but the next price cap hike in October will mean average bills are instead now £187 higher than they were last summer.

A new OECD report forecast published yesterday estimated that the UK will face the highest level of inflation of any major economy this year, with the annual rate of inflation soaring to 3.5% by the end of the year, up from 2.5% last year.

Commenting, Alasdair Allan MSP said:

“This latest Ofgem announcement on standing charges is too little, too late and still far too unfair. There is no guarantee this change will reduce anyone’s bills, as those who opt for the lower standing charge will be forced to pay a higher cost per unit of energy so suppliers can recoup costs.

“If the UK Government fails to step in with radical action to tackle soaring energy bills, they will be actively choosing to break another one of their election promises. The Western Isles has the highest fuel poverty rates in the UK, but the UK Government has still not taken any kind of step towards a long-overdue overhaul of the energy system.

“Scotland produces far more electricity than it consumes, effectively exporting energy to the rest of the UK – but despite this, Scots pay among the highest energy bills anywhere in Europe and are particularly penalised by unfair standing charges. The SNP is clear that the only way to stop this blatant unfairness is for Scotland’s energy to be in Scotland’s hands. The Scottish Government cannot currently legislate on energy policy, as this is reserved to Westminster.

“Scotland needs a fresh start with independence, putting ourselves in charge of our own energy resources, rather than Westminster.”

Martin Lewis statement on Ofgem announcement:
https://x.com/MartinSLewis/status/1970745129070665898

Households to be offered energy bill changes, but unlikely to lead to savings:
https://www.bbc.co.uk/news/articles/cx20dwzgq51o