Fuel poverty 'will rise further'

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Soaring gas and electricity bills will leave more people in Scotland in fuel poverty, a minister has warned.

It comes as British Gas owner Centrica said it was raising gas prices by a record 35% and electricity by 9%.

Communities Minister Stewart Maxwell said increasing levels of fuel poverty would worsen and called on utility firms to help vulnerable people.

Fuel poverty is defined as when more than 10% of household income is spent on fuel bills.

Mr Maxwell told BBC Radio's Good Morning Scotland programme he would not "condemn" the company for making money but he has described the move as a "kick in the teeth" for consumers.

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He added: "We've got people really struggling because of all the difficulties in the economy and at the same time this will result in even more people being pushed into fuel poverty.

"We already have very high levels of fuel poverty - they're on the increase. This will just make things much worse."

British Gas, the UK's biggest domestic energy supplier, has 15.9 million customers.

Mr Maxwell said it was "about time" Scotland took control of energy matters, which are currently reserved to Westminster.

Asked if the era of cheap energy was over, he said: "We're very supportive of micro-renewables. We are investing heavily in renewables."

Labour MSP Cathy Jamieson, a candidate in her party's leadership election, called for tough action against energy companies who increase prices while posting massive profits.

Ms Jamieson said: "Enough is enough. For companies to have six-month operating profits of �1bn whilst families are facing a 35% price hike is not acceptable."

She added: "The Chancellor of the Exchequer should make it clear that unless we see these companies show some decency then he should be prepared to introduce a windfall tax and then use that money to reduce people's energy bills."

Ms Jamieson urged Holyrood ministers to back fellow Labour MSP Sarah Boyack's member's bill on micro-regeneration and to invest more cash in insulation programmes for poorer households.

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