ScottishPower summoned to Holyrood over price increases

Published on Wednesday 8 June 2011 17:31

UNDER-FIRE ScottishPower and the UK energy regulator are set to appear before a powerful Holyrood committee over fears half the population could end up in fuel poverty if energy firms continue to increase prices.

MSPs on the economy, energy and tourism committee want representatives from the energy firm to appear at the parliament before it breaks up for the summer recess in the wake of its decision to hike bills to almost 1,400 a year.

Members of Ofgem, which had senior officials visiting Holyrood yesterday for a reception organised by Green party co-convener Patrick Harvie, will also be invited to attend the hearing.

ScottishPower has faced criticism after it emerged it will charge gas customers an extra 19 per cent on average and electricity customers an extra 10 per cent, as of 1 August. Other suppliers are expected to follow suit, blaming rising wholesale prices.

Deputy committee convener John Wilson said: "The announcement from ScottishPower will impact severely on the economy and on the economies of individual households.

"It would be useful to get both ScottishPower and Ofgem to the committee to question the validity of the charges and the increases being proposed.

"I think it's fair to say that ScottishPower has opened the door in terms of increased charges and other companies will soon follow."

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Committee convener Gavin Brown said he was concerned about calling in ScottishPower so soon and "picking on one energy company alone", before others announce their prices.

But Mr Wilson stressed that time was of the essence, citing previous announcements by Ofgem that it expects energy costs "to go up anyway to pay for new infrastructure in the UK".

He said: "Are we going to be faced, in the coming months, with the possibility of those same energy companies who are putting prices up now saying they have to increase prices again? The effect on the consumer is going to be more dramatic, and the whole question of how we go on with the renewables debate and the energy debate becomes blurred because of the debates that are going on between the energy companies.

"If prices keep rising then the number of people in Scotland who will be under the fuel poverty headline will increase dramatically.

"That fuel poverty is then a financial burden on individuals but also on the government as well, as it has to draw up measures to protect individuals who find themselves in fuel poverty."

The committee agreed to invite ScottishPower and Ofgem to give evidence before the summer recess on 1 July.

A spokesman for ScottishPower said: "We always co- operate fully with the parliament and government and are happy to attend any sessions. We look forward to receiving this invitation."