Cole-Hamilton sets out plans to cut energy bills by £100 on Aberdeen visit

Scottish Liberal Democrat leader Alex Cole-Hamilton has today used a visit to Aberdeen to campaign alongside by-election candidate Mel Sullivan to set out his party’s plans for a new “essential energy” discount to cut average family bills by £100 immediately.

Under the plan every household would receive a discount on a portion of their bill (equivalent to 50% of an average household’s use), with the most vulnerable getting the discounted rate on all of their energy use. As part of the package, families would receive an additional discount for each child they have, to reflect the increased energy costs of running a larger household.

Across the UK, the £3 billion plan would be paid for by a new clawback mechanism on energy network companies, who do not operate in the same competitive market as energy suppliers and are projected to earn around £5 billion in windfall profits by 2028 due to a loophole in the regulations of Ofgem, the independent energy watchdog.

Implementing an Essential Energy Guarantee is backed by The Joseph Rowntree Foundation, and a clawback mechanism on network operators has been suggested by both the Energy Security and Net-Zero Select Committee and the Institute for Public Policy Research (IPPR). Similar policies have been introduced in places like Japan, South Korea and California.

Alex Cole-Hamilton said:

“I’m pleased to be in the North East of Scotland campaigning alongside our excellent by-election candidate Mel Sullivan.

“While the SNP obsess over independence and Reform UK stoke division in our communities, Liberal Democrats are focused on the things that matter most like the cost of living.

“Every single household in Britain should be able to afford their basic everyday energy needs regardless of what happens in global energy markets, and regardless of who happens to be sitting in Number 10.

“That is why we are going after the big energy network operators who are gaming the system, to fund our new Essential Energy Guarantee. It is an absolute scandal that a weak regulator has allowed these monopolies to make billions in windfall profits at the expense of bill payers.

Mel Sullivan said:

“From knocking on doors I know how many families in the North East are feeling hard pressed by the cost of heating their homes.

“This is the newest part of a package of common sense policies put forward by the Liberal Democrats:, a new home insulation upgrade programme, breaking the link between electricity and gas prices, and removing the renewables obligation levy.

“If you want common sense solutions to the problems that are holding Scotland back you should back me to be your MP at next week’s election.”