Monday, June 13, 2011

Meeting urged over energy bills

12 June 2011 Last updated at 09:38 GMT Gas flames Scottish Power's price increases are expected to affect 2.4 million customers across the UK Finance Secretary John Swinney has called for an urgent meeting with Scottish Power over energy price hikes.

The utility firm announced last week that it was raising the cost of gas by 19% and the cost of electricity by 10%.

The move is expected to affect 2.4 million households in the UK.

Mr Swinney has also urged energy regulator Ofgem to bring forward action to protect vulnerable customers and make the energy market more transparent.

Scottish Power is blaming a 30% rise in the wholesale cost of gas since last November for the price increases, which are due to come into effect in August.

A spokesman for the company said: "We always co-operate with the government. We look forward to a meeting with Mr Swinney."

The Scottish government has estimated that if Scottish Power's price increases were replicated by other suppliers, more than 900,000 households would be in fuel poverty.

Mr Swinney said: "I am deeply concerned at the scale of Scottish Power's price increases and I am seeking an urgent meeting to hear why they think increases of this scale are justified.

"Any fuel price rises have an impact, yet these increases will leave many households, in particular vulnerable consumers, in real, real difficulty."

The finance secretary said the Scottish government was only able to do so much to mitigate price rises, and confirmed he had asked Ofgem to update the government on its actions to address the issue.

He added: "These latest price shocks yet again underline why it is vital to go faster and further to secure our future as a green energy powerhouse and source all of our electricity needs from renewables by 2020, creating a secure, diverse future energy mix."


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