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E.ON price rise: SFHA comment

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E.ON price rise: SFHA comment


Published by SFHA for Scottish Federation Of Housing Associations in Housing and also in Bill Payments, Central Government, Communities, Environment, Health

Commenting on today’s (Friday 6th December) announcement from E.ON that it is to raise prices by 3.7%, the Scottish Federation of Housing Associations (SFHA) said that this rise from the last of the ‘big six’ energy companies is another blow to hard-pressed consumers (1).

David Stewart, SFHA Policy Manager said:

“In view of the changes to the Energy Company Obligation (ECO) announced in the Autumn Statement, it is extremely disappointing to hear yet another of the ‘big six’ announce an above inflation price increase (2).

“Following suggestions from the energy industry that the cost of green measures had a significant role to play in rising fuel prices, George Osborne has watered down the targets set for ECO, reducing by two thirds the amount of solid wall homes expected to receive insulation by 2017. Energy efficiency schemes across Scotland which would have benefitted many living in fuel poverty will now be placed in jeopardy by the reduction.

“Following hard on the heels of the Chancellor’s shift in policy, this price increase will be a hard pill to swallow for many who are already struggling to pay their energy bills as winter bites.

“We already know that a third of households in Scotland are living in fuel poverty (3), often facing a choice between heating and eating. This increase in prices will push more people into that stark choice and comes at a time when many are already struggling financially due to the UK Government’s welfare spending cuts.”

Mr Stewart continued:

“Housing associations and co-operatives have the most energy efficient homes in Scotland (4).  However, over the past few years, hikes in fuel prices have posed a real challenge to our members who often house vulnerable people who are living on low incomes.

“We therefore repeat our call for energy companies to directly fund face-to-face energy advice for vulnerable consumers, in order to protect them from the worst impacts of these above inflation price rises.”


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4. The SFHA was established in 1976 and has around 119 members providing affordable housing and wider community services in Scotland, as well as a further 200 commercial members. The SFHA is owned by its membership and exists to support the work of housing associations and co-operatives in Scotland by providing services, advice and good practice guidance.
5. The SFHA is the voice of the principal builders and managers of new affordable housing for rent in Scotland. Housing Associations own and manage around 40% of the country’s affordable rented housing stock, over a quarter of a million homes across Scotland.
6. Housing associations and co-operatives are not-for-profit bodies regulated by the Scottish Housing Regulator.


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