Older people urged to shop for better energy deal despite new cap coming into force

Age Scotland has welcomed news that energy price caps are falling – but warned that thousands of older people are still paying hundreds more than they need to for energy.

Energy regulator Ofgem has reduced the maximum amount suppliers can charge from tomorrow (OCTOBER 1), meaning a typical household will save £75 on a standard default tariff.

While this is good news for many people struggling with fuel costs, Age Scotland says a confusing system could lead to consumers being hit with higher bills in spring. The charity is urging people to shop around and switch suppliers to get a more cost-effective tariff.

More than half of single pensioner households and four in 10 pensioner couples live in fuel poverty, defined as spending more than 10 per cent of income on energy costs. Rural households are most likely to be affected.

This is the second change to the price cap since it was introduced in January. The reduction is a response to lower wholesale energy prices over the summer, but it is likely to rise again in spring following higher winter prices.

Brian Sloan, Chief Executive of Age Scotland, said: “While this is good news for many consumers struggling with fuel bills, they shouldn’t rely on price caps to get the best deal. This confusing system means they might think they have a better energy deal going into winter, only to get an unpleasant shock when rates rise in spring.

“It’s unacceptable that tens of thousands of pensioner households are struggling with fuel poverty, cutting back on essentials to pay their bills. Many are putting their health at risk by not heating their homes adequately.

“The Fuel Poverty Bill is a step in the right direction, but the Government and suppliers need to do more to eradicate fuel poverty and help ensure the most vulnerable can pay their bills.

“We’d urge everyone to see if they can save money this winter by switching energy supplier. Anyone can get free and impartial advice by calling Citrus Energy on 0800 221 8089.

"Any older person concerned about finances can also call the Age Scotland Helpline on 0800 12 44 222 for free advice and a benefits check."