Labour said the findings "lay bare the reality of Scotland's housing emergency" and called on the SNP to build more homes. (Image: Getty Images)

SNP bid to slash poor Scots energy bills

EXCLUSIVE: SNP government enlists energy firms and consumer groups for working group to design new tariff offering discounted energy deals to vulnerable homes.

by · Daily Record

SNP ministers are planning a “social tariff” with E.ON, Scottish Gas and other suppliers to bring down energy bills for vulnerable Scots.

The Scottish Government has enlisted energy firms and consumer groups to form a working group to design the new tariff offering discounted energy deals to at-risk households.

If green-lit, it could mean cheaper bills and support for those already struggling with fuel poverty like low-income families and pensioners.

And it could also benefit some of the near 1million older Scots set to lose out on the £300-per-year Winter Fuel Payment under the Labour government’s controversial plan to means-test it.

That includes hundreds of thousands of pensioners who, despite no longer qualifying for the benefit, are struggling on low incomes just above the threshold for eligibility.

It comes as fuel bills are set to soar from October through the winter months as the energy price cap rises by 10 per cent to £1717 a year per average household.

Any decision to introduce a social tariff would ultimately need to be made at Westminster as regulation of the energy market is a reserved power.

(Image: (Image: Getty))

But Holyrood chiefs said they hope their working group can demonstrate the idea’s “viability” to Labour ministers.

The UK Government has so far not committed to a social tariff. But it is reopening the Warm Home Discount scheme next month for people on low incomes, which offers a one-off £150 discount on bills.

The SNP government said its working group - led by minister for climate action Alasdair Allan - would aim to “co-design” a workable social tariff and “demonstrate the viability and positive outcomes of the policy”.

Under Holyrood’s proposals, discounted energy deals could be offered to people struggling with extreme poverty and fuel bills, such as those already on means-tested benefits.

But the tariff could also “capture consumers who are narrowly ineligible for benefits, are on low incomes and are now in or at risk of living within fuel poverty”, the government said.

It could also provide support to those with long-term health conditions who need high amounts of energy to run medical equipment at home, as well as other groups like social tenants.

SNP minister Alasdair Allan.

Climate action minister Allan told the Record: “The Scottish Government has repeatedly called for a social tariff for those who need it the most, including those in extreme fuel poverty.

“It’s great news therefore that the energy suppliers and consumer organisations have agreed to work with us on this.

“We’ve got some way to go before it becomes a reality but this is a real step forward and could produce a model for fairer energy pricing not just in Scotland but in other nations too.”

He added: “Timescales for concluding this work will be agreed shortly but we recognise the urgency in delivering extra support for consumers struggling with their energy bills.

“We remain committed to working closely with the UK Government, Ofgem, suppliers and consumer organisations, advocating for the delivery of a social tariff across Great Britain.”

Winter heating bill help

Members of the working group include energy firms like E.ON, Scottish Gas (Centrica) and EDF, as well as consumer organisations such as Advice Direct Scotland.

A spokesman for E.ON UK said: “We’re excited to be joining this working group to discuss ways in which a social tariff can be successfully delivered in Scotland.

“Different support scheme models are available, whether co-funded as in the Netherlands, creating a more targeted form of the Energy Price Guarantee or enhancing the current Warm Homes Discount scheme.

“The key thing is to find a solution that provides more comprehensive, long-term support for the people who need it most. We’re eager to begin detailed discussions and work with other members of the group in order to progress that shared ambition.”

Andrew Bartlett, chief executive of Advice Direct Scotland, said: “It is very encouraging that energy suppliers are willing to get around the table and help design a workable social tariff, which we believe is the best way of fixing the UK’s broken energy market.

“To be truly effective, struggling households should automatically be placed on the cheapest energy deal through an opt-out system, so they do not have to take any action to benefit.

“The need for action is urgent, especially given that energy prices are about to increase as winter approaches, pushing millions of people into the desperate position of being unable to afford to heat their homes once again.”

Scottish politics

He added: “Among those who would benefit are people with illnesses and disabilities who rely on life-saving electrical equipment to stay alive.

“We hope that this new working group can show the UK Government that an opt-out social energy tariff is both workable and essential, giving it fresh impetus to act.”

In the early 2000s, energy suppliers offered social tariffs which were priced to match the cheapest available energy tariffs, and usually included support services from suppliers to help consumers lower bills further.

Social tariffs were ultimately replaced in 2011 by the Warm Home Discount scheme.

The Labour administration at Westminster insists its new publicly owned energy firm GB Energy, based in Aberdeen, will help bring down bills in the long-term by decarbonising the UK energy grid by 2030.

A spokesman for the UK Government’s Department for Energy Security and Net Zero said: “The government isn’t running away from the tough decisions needed to fix this country.

“But we will support around three million households with their energy bills this winter through the £150 Warm Home Discount, and over a million pensioners will continue to receive the Winter Fuel Payment.

“The only solution to get bills down and greater energy independence is the government’s mission for clean, homegrown power and by achieving our 2030 goal, we will protect billpayers permanently.”

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