COST OF LIVING CRISIS: Legal challenge against energy regulator Ofgem prepared by chairman of the Highlands and Islands Housing Association’s Affordable Warmth group
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A legal challenge involving a Highland campaigner is ready to be launched against the energy regulator as households across the UK brace themselves for a massive hike in their energy bills.
Ofgem will tomorrow announce the new energy price cap which is predicted to see average bills reaching about £3500 a year from October.
It comes as households, businesses, charities and organisations across the Highlands are already feeling the impact of the cost-of-living crisis fuelled by rising inflation and increased interest rates.
Di Alexander, chairman of the Highlands and Islands Housing Association’s Affordable Warmth group, says if the predictions are correct it will plunge the region – where many homes are reliant on electricity to heat their homes – into the deepest level of fuel poverty it has experienced in modern times.
In a bid to stop the anticipated rise in energy bills, Mr Alexander – an acknowledged specialist in fuel poverty and housing – has joined forces with the Good Law Project, a UK not-for-profit organisation, and the grassroots campaign, Fuel Poverty Action, to prepare a legal challenge.
Depending on tomorrow’s announcement, the three proposed claimants are ready to issue legal proceedings against the regulator.
They are also proposing a social tariff to help lower-income households.
“If the predictions turn out to be correct, Ofgem’s new price caps will double the unit price of gas – up from 7p to about 14p – but with electricity going up from 28p to an even more staggering 52p or more and, as a direct consequence, plunge the Highlands and Islands into the deepest level of fuel poverty our area has ever experienced in modern times,” he said.
“As ever, households on average or below average incomes will suffer most as they struggle to keep their homes anything like warm enough during our very long winter heating season.
“Despite this, Ofgem appear to have thrown in the towel on their legal duty to protect vulnerable consumers and that’s the reason that the Good Law Project, Fuel Poverty Action and I are now mounting a legal challenge to stop them raising the price caps in October and are calling on them to introduce a social tariff for all fuel poor and vulnerable households.”
He explained that a social tariff would be set at a much lower level per unit to ensure that targeted households could afford the essential energy they need to keep their homes warm enough.
“If Ofgem rise to the occasion, I will be the first to congratulate them,” Mr Alexander said.
“If not, then what are they for if they can’t offer us the price protection they pretend to promise?”
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David Richardson, Highlands and Islands development manager for the Federation of Small Businesses (FSB), said his organisation is calling for the UK Government to extend to smaller businesses the same level of protection that it is providing to domestic users.
“More must be done and the time for action is now,” Mr Richardson said.
“The pandemic might have ended, but the crisis facing Highland businesses and their communities certainly hasn’t.
Ofgem confirmed it had received a letter from the Good Law Project and would reply in due course.
“Ofgem’s priority is to protect consumers and we know that people are currently under huge pressure as bills continue to rise,” a spokesperson said.
“We will keep working closely with the Government, consumer groups and with energy companies on what further support can be provided to help with these higher prices.”
