THOUSANDS of Dumfries and Galloway residents will only be able to escape fuel poverty if there is a complete overhaul of the UK energy market, an energy expert has warned.
Last year, 4275 people across the region were given advice and emergency energy vouchers due to debts and not being able to pay sky-high fuel bills.
Paul Clark, from the Lemon Aid Fuel Poverty project, has now warned that the situation is only going to get worse because ‘greedy’ energy companies continue to increase gas and electricity prices – even when wholesale prices are dropping.
In an eye-opening presentation to Dumfries and Galloway councillors last week, Mr Clark revealed how customers are effectively being conned.
He explained that energy firms are producing power at a low cost using energy generators such as wind turbines – but are then charging customers based on wholesale gas tariffs (a considerably higher price).
And wholesale gas prices have only increased from £60 to £70 between 2021 and 2024, despite the “energy crisis” following the Ukraine war, yet the retail cost is now two-and-a-half times more expensive.
Paul Clark said: “This has got to be contested by the regulator and government.
“The knock-on effect of wholesale prices reducing has got to be passed onto consumers.”
He added: “If we are to impact fuel poverty, the UK energy market needs to change. The wholesale price needs to be set fairly – and local generation should impact local prices.
“You see lots of turbines in various areas, but obviously it all goes to the grid.”
Mr Clark stunned councillors when he shared what’s really going on behind the scenes at the top level with energy companies profiting from people in poverty.
He gave his presentation at the council’s tackling poverty, inequalities and housing sub-committee.
Lemon Aid, which is a subsidiary company of Citrus Energy and Cunninghame Housing Association, has been a significant project partner to the council’s emergency energy payment assistance programme.
Lemon Aid has been working behind the scenes with Dumfries and Galloway Council to help pensioners and low income families who have been struggling to heat their homes and pay rising bills.
Emergency fuel vouchers of up to £147 per household are distributed to help any vulnerable residents who are facing fuel poverty. More than 1500 fuel vouchers/emergency top-ups were handed out across the region last year.
Around 37 percent of householders in Dumfries and Galloway experience fuel poverty – higher than the national average – and Mr Clark expects that this figure will keep rising unless changes to how the energy market operates.
Interestingly, he also argues that “local energy generation should impact local prices”.
This means that regions like Dumfries and Galloway with a much higher ratio of windfarms should benefit from lower energy prices based on what this region produces.
He said: “The energy debt in the UK is touching £4 billion. Energy supply profits are still huge.
“Energy suppliers, in our opinion, will need to remove some of that debt. They cannot leave that hanging over people who will never be able to afford to reduce it.”
