Next UK Government must reform energy market to bring down soaring bills, warn campaigners

The next UK government must take “decisive” action to reform the energy market to bring down soaring bills, housing campaigners have said.

Members of the Existing Homes Alliance (EHA) said the SNP government at Holyrood must also ramp up energy efficiency programmes and schemes to connect households with clean heat.

And with wind power four times cheaper than gas, they urged the incoming Westminster government to change the current pricing system on the National Grid which is still tied to gas, keeping people's bills sky-high.

It comes as Monday marked the 15th anniversary of the groundbreaking Climate Change (Scotland) Act 2009 which first committed the Scottish Government to cutting greenhouse gas emissions.

Domestic heating is Scotland’s fourth biggest source of carbon.

Lori McElroy, Chair of the EHA, told the Record: “The climate crisis is real and all of the governments across the UK need to take action to reduce the emissions that are driving global warming.

“However, the focus of many households is managing their household budgets during the cost-of-living crisis.

“Improving energy efficiency in homes and switching to clean heating will make homes warmer and healthier, and in many cases more affordable to heat.

“But we need to find ways of meeting our climate goals that are affordable to all, both in the short term and the long term.”

She continued: “That means the UK Government taking action to tackle the fact that it’s cheaper to continue burning climate-harming fossil fuels than it is to use renewable electricity.

"It means the Scottish Government scaling up energy efficiency and fuel poverty programmes that are already transforming the lives of people and communities across Scotland.

“And it means being open and honest about what lies ahead – we know that most of us will need to switch from gas heating to electric heating over the next 10-20 years.

“The earlier we have clear guidance and standards, the earlier people can start to plan and make the switch - and the earlier industry will have the confidence to invest in growing their business to meet increasing demand.”

The Holyrood government is expected to soon launch a flagship Heat in Buildings Bill aimed at decarbonising how we heat our homes, including switching to eco-friendly boiler alternatives like heat pumps and district heating networks.

But we’ve previously told of campaigners’ fears that the policies could be ditched or diluted under new First Minister John Swinney as he seeks to refocus the government’s agenda.

David Mackay, Co-CEO at Scarf, which provides energy saving advice in the north-east, said: “We know it is critically important to give the supply chains the confidence to make the investment and grow to deliver on Scotland’s net zero ambitions.

“The Heat in Buildings Bill will do that by giving clarity and certainty to businesses and homeowners.”

Dr Matthew Lee, of Citizens Advice Scotland, said: “The switch to clean heating such as heat pumps and heat networks has to happen in a way that protects and supports people on the lowest incomes and those who are in vulnerable circumstances.

“The incoming UK Government must make rapid progress on electricity price reform, making clean heating more cost-effective.

“Alongside this, the UK and Scottish governments must work with Ofgem to make sure the right regulatory framework is in place to support growing numbers of households connecting to heat networks.”

Gordon Nelson, Scotland Director of the Federation of Master Builders (FMB), said: “Local building companies across Scotland stand ready to contribute to the transition to net zero emissions, creating thousands of green jobs and making homes more energy-efficient and affordable to heat.

“However, decisive action from both the UK and Scottish governments is imperative to provide the necessary certainty for businesses to plan and invest in the transition.”

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