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04/08/2008

Energy Prices Rise At Three Times The Rate Of Wages

Figures produced by the Scottish Government have shown that annual household energy expenditure in Scotland over the last four years has risen at three times the rate of household income.

The figures, released in response to a parliamentary question from SNP Central Scotland MSP Jamie Hepburn, revealed an increase of 24% in annual household spending on gas and electricity, while average domestic income has only risen by 9%.

Between 2003/04 and 2006/07 the average household's expenditure on gas rose by 27%, from £440 to £560. Over the same period, which does not reflect the energy price hikes of the last year, the average household's electricity costs increased by 22%, from £530 to £660 a year, while households using both gas and electricity saw a rise of 24%. According to the figures however, household income over the time frame increased by only 9% from £16,500 to £18,100.

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Commenting on the figures, Hepburn said: "Without real action on energy prices we will see more and more households pushed into fuel poverty as energy costs eat up household budgets.

"With higher heating and energy usage in Scotland we already have three times as many households in fuel poverty. Without real action by the UK Government this will only get worse.

"It is essential that we see steps taken by the UK Government to ensure social tariffs are the lowest tariffs, that pre-payment customers are no longer hit by rip-off charges and that the winter fuel payment is increased. The case for the energy companies to make a contribution to meeting the costs of fuel poverty and to supporting pensioners is compelling."

(GK/JM)

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