Call For Fuel Summit

19th September 2011

Fuel companies, government and consumer groups are being asked to take action to minimise the impact of recent energy price hikes on customers.

Following today's meeting of the Scottish Energy Advisory Board (SEAB) - which now features customer representation in the shape of Consumer Focus Scotland - First Minister Alex Salmond called on all interested parties to come together for a fuel summit ahead of the onset of winter weather.

The call comes days after the last of the 'big six' energy companies announced an increase in prices for domestic gas and electricity customers. Prices for gas are going up by between 15 and 19 per cent, with rises of between 5 and 16 per cent for electricity.

The FM said:"Scotland is an energy-rich country and it is a disgrace that around 770,000 households here are in fuel poverty. These price hikes mean up to 170,000 more families are likely to fall into this category and we are open to all options to tackle that.

"Scottish ministers have been in talks with energy providers, our Fuel Poverty and Energy Efficiency programmes have helped almost 200,000 households and the Spending Review will give further details of the new Warm Homes Fund.

"But winter is about to bite and these price hikes are going to make it even more difficult for people to afford to heat their homes.

"That's why I am today joining with Consumer Focus Scotland to call on the big six fuel companies to join us in a fuel summit. We all understand the big six have to compete in a global energy marketplace, but they must also take consumers' interests into account. I hope we have the chance to make that clear to them in a fuel summit - the outcomes of which we will discuss with Ofgem and DECC (UK Department of Energy and Climate Change)."

Consumer Focus Scotland chair Douglas Sinclair commented:"Too many people are dreading the onset of winter and Consumer Focus Scotland believes that this winter will see many people making tough choices between staying warm or going deeper into debt. I hope that all the major companies will be represented at this summit.

"We accept that fuel prices have gone up - but so have the profits of the energy companies, and this has to be about people not just profits. The companies have a major role to play, alongside all of us, in helping to make Scotland's housing as energy efficient as possible. I hope that the First Minister's initiative will lead to an innovative response."

Infrastructure and Capital Investment Secretary Alex Neil added:"The price of heating your home is a real worry for many Scots and these price rises mean that is becoming an even bigger concern. Promoting the interests of Scottish consumers ahead is critical - particularly as we face a winter when people are going to have to spend increasing amounts of tight household budgets heating their homes.

"The regulator Ofgem is carrying out valuable work on the Retail Market review. That is something we support - and we welcome the fact that the regulator is working to drive transparency and fairness for customers.

"It's more important now than ever that the interests of customers are represented at the highest level and I am very glad that Consumer Focus Scotland is represented on the SEAB. We now want to get round the table with them and the energy providers to see what can be done to mitigate the impact of these price hikes on domestic customers."