ALBA Call for Ofgem Board to be Sacked for “Failing to Protect Consumers” as Price Cap Remains Above £2000
The ALBA Party have called for the Board of Ofgem to be sacked as the Energy Regulator has failed to lower the the energy price cap in line with falling wholesale gas prices.
The pro-independence party wanted to see Ofgem announce a lowering of the energy price cap by over £2000 to reflect that the wholesale cost of gas is back below pre Ukraine war levels but instead the Energy regulator’s price cap has only been reduced slightly to £2,074 a year for the typical household from July. But energy prices will still be around double the 2021 figure of £1042 and they are expected to rise again in January.
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 Ofgem have failed in their duty to protect consumers as they say Ofgem should have lowered the energy price cap 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 Ofgem’s refusal to act to protect consumers must now result in action from the Tory Government at Westminster.
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 Ofgem Board to be sacked and for UK Government intervention, ALBA Party Depute Leader Kenny MacAskill MP 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 needed action today but Ofgem have failed to put in place a satisfactory reduction of the energy price cap which should have been reset to a level much closer to £1000 - that would have been a £2000 saving for the average household.
“The UK Government must now intervene. The Board of Ofgem should be sacked and an energy price cap should be put in place to ensure that people aren’t kept in fuel poverty.
“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.”