Energy Cost Crisis As Latest Hike Announced

Strathaven based SNP MSP Linda Fabiani, is warning of an energy cost crisis after utility firm E.ON announced further hikes in gas and electricity prices. From 22 August 2008 gas bills will increase by 26% and electricity by 16%.

Ms Fabiani pointed to figures, published this month by Ofgem, which reveal that the number of electricity and gas disconnections for debt in 2007 soared to 8,324, up by 3,270 on the previous year’s total.

Ms Fabiani said:

“These latest figures from Ofgem are yet another example of the impact that rising costs are having on peoples lives. There will be people in East Kilbride already struggling to meet the increased cost of living and this latest round of price rises will mean even more households having to tighten their belts.

 
“We have to be concerned that the figures from Ofgem show that debt and disconnections are escalating and fuel poverty increasing.

“At the moment the energy market is simply not working for the consumer and the UK government must take steps that will alleviate the financial problems that households have to cope with.

 “They should move to provide support to the most vulnerable of our communities and use some of the record windfalls from North Sea Oil to offset the increased expenditure people are facing.