Energy Price Cap Rise: public are paying for political failure to transition away from fossil fuels

Climate campaigners have responded angrily to the 13% rise in energy bills slamming “greedy energy giants” and highlighting how the public are “paying for the political failure to transition away from fossil fuels”.  

The energy regulator Ofgem, who set the price cap, announced a £221 rise to average annual bills – bringing them up to £1862. This is largely due increasing wholesale costs of gas amidst the ongoing war in Iran.

Recent research highlighted that the world’s top 100 oil and gas companies have made over $30 million an hour since the war broke out.  

Official figures from 2024 show over a quarter (732,000 households) are struggling to pay energy bills and 357,000 households (14.0% ) were in extreme fuel poverty. These figures could worsen as energy bills rise again.  

The SNP, the Conservatives and Reform have spent recent months calling for the Windfall Tax on excessive profits energy companies to be scrapped. This is despite energy firms making £125 billion in profits on their UK operations since the energy bills crisis started with the Russian invasion of Ukraine. 

Friends of the Earth Scotland just transition campaigner Catrina Randall commented,   

“Household energy bills are being driven upwards by the insatiable greed of energy giants during a time of war and crises. People are paying the cost for the failure of politicians to transition our energy system away from fossil fuels.  

“It is infuriating that fossil fuel companies are getting even richer from the hardship people across Scotland will be facing.  Despite this, politicians are acting like they’re best pals with these companies, demanding ever more drilling and lower taxes on their obscene profits.” 

“We need to build an energy system that brings down bills, is based on renewables and run in the public interest. We should be the first ones to benefit from the wealth of renewable energy we have here in Scotland – not company shareholders.” 

“Burning expensive gas to generate electricity leaves us all more vulnerable to international price shocks like the one produced now by the war in Iran. Families across Scotland will be worried about yet another increase in energy bills due to the global price of gas, so it is mind-blowing that Scottish Government ministers are still considering approving a new gas burning plant at Peterhead.”   

“Millions of people are trapped in leaky homes that increase already high bills. We need to improve people’s homes so that they waste less energy, are warmer in the winter, and bring costs down for everyone.”