Carmichael rails against planned energy price hike

Plans to hike the average household energy bill by £500 should be scrapped, according to Orkney’s MP.

Alistair Carmichael has called for the scheduled uplift next month to be cancelled, and for a tax to be brought in on the “bonanza bonuses” of oil and gas bosses.

His party, the Liberal Democrats, is calling for cuts to people’s bills instead — combined with a new energy support package for businesses and public enterprises. This, according to Mr Carmichael, would mean that in the Northern Isles the average household would be £377 better off. Cumulatively, families in Orkney and Shetland would save a projected £12.1million under Liberal Democrat proposals.

Nationally, the party has set out its plan to tackle the energy crisis, including a stronger windfall tax on oil and gas companies, cancellation of the energy bill rise in April, and a one-off bonus tax on oil and gas executives. They have also proposed a doubling of the Warm Homes Discount to £300, and a u-turn on plans to slash energy bill support for businesses, leisure centres, schools and hospitals by 85 per cent.

Mr Carmichael said: “The Conservatives’ plan to hike energy bills in April will come as a hard hit to families in the isles who are already struggling with squeezed incomes, food prices and tax rises.

“With inflation still running north of ten percent that is a price hike few will be grateful for.

“Far too much of the support that has been given to families has been late in coming and confusing in the implementation. To cut off support even as households are still waiting for some delayed payments risks leaving people entirely in the dark. We need more certainty and a more thoughtful response from the government.”