Energy Price Cap - 27/2/23

SNP REITERATE CALL FOR CHANCELLOR TO REVERSE INCREASE TO GOVERNMENT CAP

Chancellor Jeremy Hunt is being urged to reverse a planned increase to the government energy price guarantee and pass on a 20% reduction in wholesale energy prices after Ofgem published its reduced price cap.

The energy regulator announced that the new cap from April will be £3,280, down from £4,279. However, bills are still set to increase as the UK government-imposed cap is set to rise from £2,500 to £3,000 a year.

That is also despite wholesale gas prices dropping by 75% since their peak in the summer. The SNP is calling on the Chancellor to pass on this price drop to consumers by reducing its energy price guarantee cap by 20% to £2,000.

Commenting, SNP Energy spokesperson Alan Brown MP said:

“People across Scotland will be scratching their heads as their energy bills are set to go up, despite the price cap coming down. Jeremy Hunt must pass on the reduction in wholesale gas prices to consumers and bring down the government’s cap on bills to £2,000 per year.

“The UK government will actually be spending less on the energy price guarantee because of the reduction in the Ofgem cap, so households should be seeing the impact of that on their energy bills. Instead, the Chancellor is planning on keeping the surplus whilst energy bills skyrocket again.

“In a country as energy rich as Scotland, people should not be paying through the nose for their gas and electricity bills. It is only because of decades of Westminster mismanagement of Scotland’s resources that this has happened.

“Only with independence can we truly harness the potential of Scotland’s renewable energy industry and for the people of Scotland to benefit from our resources.”