Energy price cap is a ‘joke’, says Carmichael

Orkney and Shetland MP Alistair Carmichael. 

Having an energy price cap is a “joke” when the Northern Isles are one of the worst hit by fuel poverty, according to MP Alistair Carmichael.

This comes as the energy regulator Ofgem was announced a cut in the energy price cap today (Friday), which they said would save the average household £238 a year.

Mr Carmichael welcomed the announcement from the regulator that the price cap would likely fall from £1,928 per year at present to £1,690 from 1st April.

But he said that people in his constituency were among the worst hit by fuel poverty and a universal strategy failed to meet the needs of everyone.

“Any drop in energy prices is a positive for hard-pressed families in the isles,” he said. “It has been a pretty turbulent winter even by isles standards and so lower costs will be a partial respite.” But the Liberal Democrat said the government needed to find a way to reform the system that best suits the different areas across the United Kingdom. Mr Carmichael said: “The joke that is the price ‘cap’ gets less amusing every time it is revised.

“Sooner or later the government is going to have to think about proper reform of the energy market, with accountability and transparency, and – finally – a model that works for areas with the worst fuel poverty.”

Energy Advice Scotland’s Hazel Knowles said the cost of living crisis was “still being felt” across the country. “The level of energy-related debt across Scotland and the UK is at record levels and many people struggling to afford even basic essentials simply do not have the money to get back on track,” Ms Knowles said. It comes as the Trussell Trust revealed 47 per cent of people on Universal Credit in Scotland were finding it a constant struggle to keep on top of bills.