First Minister chairs a cost of living summit with energy firms
Nicola Sturgeon warns families face a devastating winter
With warnings families could be paying nearly £6000 for gas and electricity next year Nicola Sturgeon is chairing a special summit to discuss what can be done to mitigate the impact of soaring energy bills.
The First Minister has already warned many families will face "destitution and devastation" if energy prices increase again in October.
Ms Sturgeon is bringing together representatives from both the power companies and consumer groups to consider what support can be provided.
Price cap keeps rising
The energy price cap currently limits payments for domestic customers to a maximum of
£1,971 a year. But regulators at Ofgem are due to announce the revised limit on Friday - when the cap is expected to rise to £3,576, with further increases then expected in 2023.
Poverty Alliance director Peter Kelly welcomed the summit, which his organisation will be attending, along with Energy Action Scotland.
Mr Kelly said: "Across the country, people are increasingly being swept up amid a rising tide of hardship. But with the energy price cap due to increase in October, that tide threatens to become a flood.
"Households up and down Scotland are terrified of what the colder months will bring and the likelihood is that - without further action - lives and life chances will be at risk. The situation could scarcely be more urgent."
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Power giants to join talks
Energy suppliers Scottish Power, OVO Energy and E.ON are also due to take part in Tuesday's summit, with Ms Sturgeon having already insisted that the rise in the cap in October "can't be allowed to go ahead".
Speaking on Sunday she said: "There is a looming disaster that is already unfolding but it is going to get worse.
"This is going to cause destitution and devastation, this will cause loss of life if real action is not taken to stem this crisis."
A UK Government spokesperson said: "We are providing a £400 discount on energy bills this winter, and £1,200 of direct support for the most vulnerable households.
"While no Government can control global gas prices, over 22 million households are protected by the price cap which continues to insulate households from even higher prices."
The Cost of Living Crisis
Interest rates and inflation go up
Inflation rose by 8.8% in the 12 months to January 2023, down from 9.2% in December 2022. With interest rates also rising to 4%, those saving money will earn more interest on their finances, whilst those paying mortgages would pay more interest to the bank.
Energy bills
The price of energy went up incredibly as the cost of living crisis hit, with the gas price spike caused largely by the war in Ukraine. The price cap - which is set by an independent regulator to help offset costs onto customers - was set to rise to £3,549 for an average home in October but a price freeze from the government restricted the typical bill to £2,500. That's still an increase of 27% from the previous energy cap and as it's a cap on unit cost, the more energy you use the higher your bill will be.
Food prices
The cost of a weekly shop also has gone up as a result of the cost of living crisis. As a result of the war in Ukraine, a number of products including cooking oils and wheat have been disrupted. This means that several products are now considerably more expensive, driving bills up for customers.
Prices at the pumps
The average cost of petrol has also rose to unprecedented levels. Supply lines for petrol have been thrown into doubt as a result of the war in Ukraine, as Russia is a large export partner for gas, oil and fuel. In April 2022, the average price for a litre of petrol on the forecourt was 160.2p, whilst a litre of diesel would cost 170.5p. By late June 2022 the price had risen to an average of 190.9p for a litre of unleaded and 198.9p for a litre of diesel. In March 2023 the price wass on average of 147.03 in petrol and 167.04 in diesel.
Average cost of filling up a car with petrol hits £100
On 9th June 2022, the average cost of filling up a car with petrol hit £100 for the first time ever. Diesel had already hit that milestone. It comes as the cost of fuel hit a record high of one pound eighty a litre. The 2p rise was the biggest daily jump in 17 years. Prices have dropped by at least 20p per litre since the high point.