COST OF LIVING CRISIS: Energy price caps announced by Prime Minister Liz Truss welcome for households and businesses in the Highlands – but warns savings in the region will be lower
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Prime Minister Liz Truss has announced plans to limit energy bill rises.
Speaking in the Commons, she said the typical household energy bill would be capped at £2500 annually for two years from October 1. It had been due to rise from £1971 to £3549 in October.
She also said businesses will get a support package for six months which will provide equivalent support.
After the six-month period, further support will be targeted at "vulnerable industries".
But there are concerns the measures are not targeted enough, with many people will still expected to be in fuel poverty this winter.
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Highland economist Tony Mackay said the price caps were undoubtedly very welcome for households and businesses in the Highlands.
"The Prime Minister said that the £2500 price cap will save the average household about £1000 a year," he said. "However, energy consumption in the Highlands is about 25 per cent higher than the UK average because of our weather and geography, so the average annual saving here will be lower at about £750.
"Average earnings are also significantly below the UK average so the benefits will not be as great as those for people in the South of England, Edinburgh and Glasgow areas.
"The price cap for businesses is also very welcome, although it will only be for six months.
"They have suffered most from the recent huge gas and electricity price rises. Some local businesses have been forced to close.
"I hope that the six months cap will give other businesses sufficient time to try to solve their problems."
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