THE typical Scottish household’s energy bills are set to rise by two per cent from October, energy regulator Ofgem has said.
Ofgem’s new price cap is set at £1755 – which is the rate an average, dual-use household will pay over a year, not a genuine cap on costs.
The price rise is above the 1% which had been predicted, and has been called “unacceptable” by Citizens Advice Scotland.
When Labour came into power in July 2024 promising to cut energy bills, the Ofgem price cap was sitting at £1568.
Advice Direct Scotland said that the new price cap is £617 more than the amount that households were being charged before the energy crisis hit in the autumn of 2021, an increase of 54%.
Tim Jarvis, director general of markets at Ofgem, said that “while today’s change is below inflation, we know customers might not be feeling it in their pockets”.
He went on: “There are things you can do though – consider a fixed tariff as this could save more than £200 against the new cap.
“Paying by direct debit or smart pay-as-you-go could also save you money.
“In the longer term, we will continue to see fluctuations in our energy prices until we are insulated from volatile international gas markets.
“That’s why we continue to work with Government and the sector to diversify our energy mix to reduce the reliance on markets we do not control.”
David Hilferty, the director of impact at Citizens Advice Scotland, warned that the increase will “pile even more pressure on the thousands of people across Scotland who are already unable to afford their energy bills”.
“It will mean more people suffering the cold and going without food or warmth as we head into the winter,” he added. “This is unacceptable.”
“This week we published figures showing that the number of people in debt to their energy companies is higher than ever. Today’s announcement will be a further blow to those households.
“The energy market is broken and needs major reform. Price cap adjustments every three months are not the solution people need.
“We need government, regulators and energy companies all to step up and urgently deliver lasting solutions like a social tariff and a robust scheme for energy debt relief. Solutions that stop people from experiencing harm.”
Jillian Edmund, energy project lead at Advice Direct Scotland, said: “A rise in the price cap from October is unwelcome news for Scottish households, especially as we move into autumn and people start to use more energy on heating their homes.
“The cost of living is still extremely high, and people are spending hundreds of pounds per year more than before the energy crisis hit, with household budgets stretched to the limit – that’s why Advice Direct Scotland is calling for a social energy tariff for vulnerable groups.
“Customers can take practical action by examining their bills, finding out how much they are paying and checking if there are cheaper options available with other suppliers.”
In a statement responding to Ofgem’s price cap announcement, a Labour Party spokesperson did not address the rising costs, instead attacking the Conservatives and Reform UK.
They said: “Energy bills soared under the Conservatives because they tied our country to the fossil fuel rollercoaster and working people are still paying the price.
“From banning onshore wind to failing to deliver new nuclear, their reckless decisions left Britain exposed to wholesale gas prices that are still 75% higher than before Putin’s invasion of Ukraine.
“That’s why Nigel Farage’s unpatriotic war on clean energy would be a total disaster for families, businesses and our economy. His destructive plans would push bills higher, kill nearly a million jobs and scrap billions of pounds of vital investment across the country that will strengthen our energy security.
“This Labour Government’s Plan for Change is protecting consumers with three million more families getting £150 off their bills through the Warm Home Discount, a total of six million in all, as we continue to invest in clean homegrown power to bring energy bills down for good.”
