Carmichael says energy price cap rises are ‘galling’ for islanders
A rise in the energy price cap this month will be “galling” for many in the isles given the amount of renewable energy that is generated here.
That was the assessment of Orkney and Shetland MP Alistair Carmichael after it emerged the average household’s fuel bills had shot up to £1,755 per year.
Mr Carmichael said his constituents already paid more for energy than other places across the UK and experienced the highest levels of fuel poverty.
“This is particularly galling as we host so much of the emerging renewable generation, both onshore and offshore,” the Liberal Democrat said.
He pledged to continue pressing for the introduction of a geographical tariff.
Mr Carmichael also said he wanted more work to be done between the UK government and energy regulator Ofgem to bring in a social tariff which would help “those least able to pay”.
He added: “We have had some good statements of intent on this but warm words will not heat our homes this winter.”
The energy price cap is a set limit on the cost of each unit of gas and electricity used by consumers. Additionally, it sets a maximum standing charge amount. This applies to the standard or default tariffs charged by energy companies.
Market analysis company Cornwall Insight said calls for targeted social tariffs and other support measures were “expected to grow” as households found it increasingly difficult to pay their bills.
It said Ofgem was consulting on a proposal which would see suppliers offer at least one tariff with a lower standing charge.
The analyst company added: “While these could suit households that use very little energy, the trade-off is higher unit rates.
“That means most homes may not see savings, and for vulnerable customers, people in less efficient homes, or those with higher energy needs, the new tariffs could actually leave them worse off.”
Energy prices are forecast to fall slightly in the new year.
Craig Lowrey, principal consultant at Cornwall Insight, said: "A dip in bills this January might come as a relief for households, but we shouldn’t mistake this as the start of a trend toward cheaper energy.”
Shetland Islands Council has been making repeated calls for a “Shetland tariff” in recognition of the high levels of fuel poverty in the isles - but so far it has not been taken up by the UK government.