Summary

  • Representatives from Energy UK, Scottish Power and Offshore Energies UK speak to MSPs about the energy crisis

  • The chief executive of Scottish Power Keith Anderson tells members of the energy committee that he has real concerns about the price increases due to come in October

  • He points to estimates that 40% of UK households could be classified as being in fuel poverty this winter

  • The committee also heard from Scottish charities about their concerns

  • The Joseph Rowntree Foundation, Energy Action Scotland and Citizens Advice Scotland say more must be done by governments to help

  • Frazer Scott from Energy Action Scotland fears for people's lives this coming winter as the energy crisis intensifies

  1. Energy price hike evidence: Key momentspublished at 12:55 British Summer Time 26 April 2022

    • MSPs have heard from charities that Scotland faces a "deep crisis" due to increased energy prices
    • They've also heard calls for energy suppliers to offer customers more support
    • Energy Action Scotland says the cost of living crisis means it has never been such a "dreadful time"
    • The charities called on both the UK and Scottish governments to do more to address the challenges
    • Scottish Power's chief executive stressed "real concern" over the October price rises
    • Keith Anderson reiterates they will affect a huge number of people, "it could be truly horrific"
    • Ross Dornan from Offshore Energies UK says people are facing a "horribly difficult situation" across the country

    That's all from our live page coverage of the energy prices evidence session at Holyrood this morning.

  2. Is Ofgem's price cap fit for purpose?published at 12:42 British Summer Time 26 April 2022

    SNP MSP Natalie Don asks: "Is Ofgem's price cap fit for purpose?"

    Ross Dornan from Offshore Energies UK (OEUK) says the cap was introduced to ensure customers paid a fair price.

    Mr Dornan points out it wasn't a social pricing scheme or about tackling fuel poverty.

    He says the price cap had shielded a lot of customers from rapid price hikes.

    Ofgem's action plan, announced just before Christmas, was "incredibly welcome" Mr Dornan adds.

  3. 'Massive volatility' in gas prices highlightedpublished at 12:24 British Summer Time 26 April 2022

    Scottish Power chief executive Keith Anderson says there has been "massive volatility" in gas prices, adding that they are showing no signs of coming back down.

    Ross Dornon suggests there seems to be a consensus that the challenges will cover an extensive period.

    Even with a de-escalation of the war in Ukraine there is expected to be a long prolonged period of increased prices, he tells the committee.

  4. 'Horribly difficult situation' must be addressedpublished at 12:23 British Summer Time 26 April 2022

    Ross Dornan from Offshore Energies UK (OEUK) says people are facing a "horribly difficult situation" across the country.

    He adds that there must be strategic thinking to address the short term and the longer term issues.

    People need support right now to help with their bills, he urges.

  5. 'Real concern' over October price rises - Scottish Power chiefpublished at 12:10 British Summer Time 26 April 2022

    Keith AndersonImage source, Getty Images

    Keith Anderson from Scottish Power says the net zero targets are important and can help with the gas crisis, but "much more direct action" is needed.

    He warns of an October price rise which gives him "real concern" and puts the issue to a "size and scale that is beyond what he can deal with".

    He says in the last week a new emergency number for Scottish Power customers has seen 8,000 calls.

    Mr Anderson says both governments will have to act to address the crisis and calls for "some form of deficit fund" which would allow £1,000 to be taken from the bills of people who are being hit hardest.

    By October 40% of people in the UK could be in fuel poverty, he warns.

  6. Scottish government must reprioritise its budgetpublished at 11:53 British Summer Time 26 April 2022

    The Scottish government must reprioritise its spending, argues Chris Birt.

    He says families across Scotland should not be left "cold and hungry".

    Mr Scott points out Scotland has 600,000 people in extreme fuel poverty at the moment.

    Alastair Wilcox calls on the Scottish government to increase the budget and eligibility criteria of Warmer Homes Scotland, external.

    The programme offers funding and support to households struggling to stay warm and keep on top of energy bills.

    Mr Wilcox also points out we are not meeting energy efficiency targets and the Scottish government "needs to turbo charge" its funding.

    He calls for more funding to tackle fuel poverty.

  7. Call for UK and Scottish governments to work togetherpublished at 11:39 British Summer Time 26 April 2022

    Green MSP Mark Ruskell asks: "What should the government be doing for the next three months?"

    Frazer Scott from Energy Action Scotland responds saying he would like to have seen an emergency response insulating as many vulnerable people's homes as possible.

    Mr Scott calls for better targeting of families in terms of the Child Payment and Child Winter Assistance.

    He calls for an end of the "dreadful" annual cycle of funding for organisations offering support and for the Scottish government to work with the UK government on a strategy to help tackle the crisis.

  8. What more can be done?published at 11:33 British Summer Time 26 April 2022

    Frazer Scott from Energy Action Scotland warns domestic consumption of energy will fall simply because it is unaffordable.

    Labour MSP Monica Lennon asks what more can be done and raises the case of a constituent who could not afford to charge their mobility scooter.

    Chris Birt from the Joseph Rowntree Foundation says: "This cost of living crisis is only a crisis for those on low incomes."

    He adds that the social security system has the opportunity to reduce poverty and he calls for "major change in our society".

  9. 'Horrific events in the Ukraine' hits energy marketspublished at 11:28 British Summer Time 26 April 2022

    Alastair Wilcox from Citizens Advice Scotland says the "horrific events in the Ukraine" will impact negatively on energy markets.

    Mr Wilcox warns the volatility is likely to be significantly elevated for the next couple of years.

    He points out both Scottish government and UK government need to think about what more can be done.

    Mr Wilcox added that despite the help both have announced more needs to be done.

  10. Call for energy suppliers to offer more supportpublished at 11:14 British Summer Time 26 April 2022

    Frazer Scott from Energy Action Scotland says "almost all of us are on the same energy rates".

    Mr Scott adds: "I would like to see suppliers work harder to support their customers at this time."

  11. What help is available?published at 11:01 British Summer Time 26 April 2022

    All three witnesses have agreed we are facing an unprecedented crisis.

    You can find advice from the organisations they represent at the websites below:

    You can also check how the energy price cap affects you by going to the official energy regulator

    Energy Savings TrustImage source, Energy Savings Trust

    People struggling to afford energy bills can also seek advice from charities such as Turn2Us, external or the StepChange, external debt charity.

    All the big energy firms also have hardship funds that can offer assistance if someone is struggling to pay.

    The UK government has said it will offer extra help worth a total of £350 via the council tax system and loans. That has been replicated in Scotland.

    The warm house discount scheme, external will also be expanded to cover three million households. It offers low income households a one-off annual discount on their electricity bill, and was worth £140 in 2021-22.

    In October customers in England, Scotland and Wales will receive a £200 rebate on their energy bills. They will have to repay this at £40 a year for five years, starting in April 2023.

    The Northern Ireland energy market is separate, but the government has said £150m would be available to support households.

  12. Witnesses warn Scotland is facing a 'deep crisis'published at 10:43 British Summer Time 26 April 2022

    Kettle next to smart meterImage source, Getty Images

    Frazer Scott from Energy Action Scotland agrees advice is funded in a "myriad of ways".

    "We are actually losing capacity across Scotland at this particular time," he adds.

    Some organisations are running on reserves as they wait for decisions in May, he explains.

    Advice services will stop and cease to exist, Mr Scott claims.

    "We do need an army of people out there supporting people to get the best results, but we are not there."

    Mr Scott tells MSP "this is an absolute crisis" and an "unprecedented moment".

    Chris Birt from the Joseph Rowntree Foundation agrees we face a "deep crisis" requiring an "army of support".

    He adds that the UK government's response to this crisis has been "woefully inadequate".

    The £200 loan is "ridiculous", Mr Birt tells the committee, adding the "£150 council tax rebate", copied in Scotland, is a "huge missed opportunity".

    He calls for more targeted support to those who need it the most.

  13. CAS says there is uncertainty around advice fundingpublished at 10:37 British Summer Time 26 April 2022

    Alastair Wilcox from Citizens Advice Scotland says there is a lack of joined-up thinking in terms of funding advice for consumers.

    Mr Wilcox cites the example of the Warm Homes Discount Scheme and uncertainty about its future.

    The CAS representative stresses concerns about the lack of clarity in the fuel poverty strategy.

    The demand and need for advice is only going to increase he tells the committee.

  14. 'Most difficult of times' - fuel poverty campaignerpublished at 10:26 British Summer Time 26 April 2022

    Frazer Scott from Energy Action Scotland tells the committee that not everyone can be helped because of the enormity of the crisis.

    There should be a national programme detailing support, he argues.

    Mr Scotts adds that people are not having to choose between heating and eating, "they simply can't afford to do enough of either".

    "And therefore we are facing one of the most difficult times we will ever face."

  15. 'Dreadful time' - Energy Action Scotlandpublished at 10:17 British Summer Time 26 April 2022

    Chris Birt from the Joseph Rowntree Foundation points out there is only so much advice that can be given when energy prices are rising up by as much as £1,000.

    Frazer Scott from Energy Action Scotland says: "In the 40 years of our charity there has never been such a dreadful time."

    Mr Scott points to "sudden and dramatic increases" in energy price.

    Quote Message

    "It's hardly surprising that more and more people are looking for assistance."

    Frazer Scott, Energy Action Scotland

  16. Background: Price rises will be horrific says Scottish Power bosspublished at 09:45 British Summer Time 26 April 2022

    Source Ofgem

    The chief executive of Scottish Power has said energy price rises later this year are going to be "horrific".

    Keith Anderson told MPs at Westminster "so many people are really going to struggle".

    He said the 54% increase in the energy price cap was already affecting customers and another steep rise is expected in October.

    Mr Anderson said his company had 8,000 calls last week to a hotline for people worried about their ability to pay.

    The Scottish Power chief appeared before the House of Commons Business, Energy and Industrial Strategy Committee, external alongside the bosses of E.ON, EDF and Centrica, which owns British Gas.

    Read more here.

  17. The committee beginspublished at 09:39 British Summer Time 26 April 2022

    The committee gets underway looking at minor legislation with the Zero Carbon Buildings Minister Patrick Harvie.

  18. Welcomepublished at 18:56 British Summer Time 25 April 2022

    BillImage source, Getty Images
    Image caption,

    MSPs will take evidence on soaring energy bills.

    Good morning and welcome to our live coverage of Holyrood's Energy Committee on 26 April 2022.

    MSPs will shortly take evidence on the recent price hikes in energy bills.

    Scottish Power chief executive Keith Anderson, who last week warned of "horrific" price rises to come, will give evidence as part of the second panel of witnesses.

    First up though we'll hear from charities including the Joseph Rowntree Foundation.