ALBA Demand of Ofgem: “Lower Energy Price Cap to £1000”
The pro-independence party want to see Ofgem lower the energy price cap by over £2000 to reflect that the wholesale cost of gas is back below pre Ukraine war levels
The ALBA Party have urged Ofgem to cut the energy price cap by over £2000 or face being wound up by the UK Government.
ALBA say that it is time to stop “the Great British Fuel Rip Off” of energy bills being at eye watering levels despite the wholesale price of gas now falling drastically to levels below those before the Ukraine War.
ALBA point to wholesale prices reaching a high of around 590p per therm in August 2022 in contrast with the current wholesale price of only around 67 pence.
ALBA say that this means that when Ofgem set the next quarter’s energy price cap this week, they should lower it by over £2000 and reset it at around the £1000 mark.
ALBA Party’s lower energy cost campaigning Depute leader, Kenny MacAskill MP says that if Ofgem don’t act to protect consumers this week then it’s time for the UK Government to sack their board and make the decision for them.
Energy bills in Scotland, including electricity costs, are set against the wholesale price of gas. This has meant that despite Scotland having an abundance of natural resources such as wind and hydro, adding to country’s North Sea Oil and Gas reserves, record numbers of people have been plunged into fuel poverty.
ALBA say that “Scotland is the only energy rich nation in the world with its people living in fuel poverty”.
Calling for the energy price Cap to be reduced by £2000, ALBA Party Depute Leader Kenny MacAskill said:
“Scotland is an energy rich land but as a result of UK Government mismanagement of our energy resources we have record levels of fuel poverty.
“The Energy Price Cap was quick to rise as the wholesale cost of gas shot up, but Ofgem haven’t been so quick at protecting consumers with cheaper energy bills as the wholesale cost has dropped.
“People across Scotland need action this week. Ofgem must announce the reduction of the energy price cap, resetting it to a level much closer to £1000 - that would be a £2000 saving for the average household. If Ofgem fail to act then the UK Government should sack them and intervene.
“Of course, the only way to properly protect Scotland from the Great British Fuel Rip Off is to have the powers of independence so that we can unleash the potential of energy rich Scotland to ensure cheaper bills for fuel poor Scots.”