Energy Price Cap: Nicola Sturgeon calls for UK Government to freeze increase

The energy price cap will increase from the current £1,971 to £3,549 from October 1, the regulator announced on Friday morning.

Charities, opposition politicians and trade unionists have warned of an anxious time for families across the UK.

Ms Sturgeon, who is due to travel to Copenhagen to open the Scottish Government's new Nordic office today, said the prce rise "cannot be allowed to go ahead."

She Tweeted: "This rise must be cancelled, with the UK gov and energy companies then agreeing a package to fund the cost of a freeze over a longer period, coupled with fundamental reform of the energy market."

This is simply unaffordable for millions. It cannot be allowed to go ahead. This rise must be cancelled, with the UK gov and energy companies then agreeing a package to fund the cost of a freeze over a longer period, coupled with fundamental reform of the energy market https://t.co/bDXM7fDeyD

— Nicola Sturgeon (@NicolaSturgeon) August 26, 2022

Scotland’s Energy Secretary also called on the UK Government to take "immediate action" to cancel the price energy cap rise and help struggling households. 

Michael Matheson said that the decision by Ofgem to raise the cap by 80 per cent to £3,549 from October 1st was a "public emergency"

Speaking just after the energy price cap rise was announced, SNP Minister Michael Matheson said: “This announcement from Ofgem of an average 80% increase on energy prices will only escalate the enormous strain upon the many thousands of households and businesses across the country who are already having to deal with April’s energy bill increases and wider cost of living pressures.

“Today’s price cap announcement and increase imposes a burden that customers simply cannot be expected to carry.

"The only acceptable course of action now is for the UK Government, who have the necessary policy levers and borrowing powers at their disposal, to take immediate steps to cancel the increase for all households."

Michael Matheson

He added: “The Scottish Government is treating this situation as a public emergency. We will continue to do everything we can to mitigate the effects for consumers.

“Our foremost concern is for those in or at risk of fuel poverty and it is imperative that those worried about or struggling with heating their homes access the information and support they need to reduce their energy bills.

“To this end, the Scottish Government has prepared a £1.2 million package to enable the immediate expansion of energy advice services to ensure households and businesses receive the support and guidance they need.”

He said that no single government, company or organisation can solve the crisis alone and that it “requires a collective response commensurate to the situation.”

Labour shadow chancellor Rachel Reeves urged the Government to act to protect the public from soaring energy bills.

She accused ministers of being nowhere to be seen on the morning of the announcement.

Appearing on BBC Breakfast, the Labour MP said people are “worried sick” about what is happening and is “striking fear in the hearts of families right across the country”.

She called on the Government to freeze energy fills and follow Labour’s own proposals.

“The fact that no Government minister is available to come on your programme today is just appalling.

“They are not here to give assurances they are not here to set out what they are going to do.

“That is a dereliction of duty.”

Katie Schmuecker, principal policy adviser for the Joseph Rowntree Foundation, said households are “crying out for certainty and security”.

She said: “It is simply unthinkable that the price rises announced today can go ahead without further Government intervention on a significant scale.

“To force the burden of rising wholesale energy prices onto households will plunge many into destitution.

“Millions more will face the threat of bills they simply cannot pay, homes they cannot heat and stomachs they cannot fill.

“It is the job of Government to decide how the burden is fairly shared between families, businesses and the public finances.

“Whoever occupies number 10 next will be remembered for who they protect – they must make sure energy doesn’t become a luxury only the wealthy can afford.”

Rethink Mental Illness called the news of the energy price cap rise a “hammer blow” to households across the country.

Alexa Knight, associate director for policy and practice, said: “Mental health and money worries are intrinsically linked, and we urgently need a clear response from Government to an economic crisis that has the potential to fuel a mental health emergency.

“There is a growing feeling of powerlessness which will not subside until we see concrete plans from the Government about how they will provide targeted support through the difficult months ahead.

“With mental health services already facing record demand, we need more than a recognition of the problem. We need urgent action to address the gravity of the situation people are facing. This cannot arrive a minute too soon.”