Scots set to pay £500 more on energy bills this year despite new Ofgem price cap

Daily Record

23-05-2025

Ofgem has announced the price cap will fall from £1,849 to £1,720 on July 1.
Ofgem has announced household energy bills will fall by seven per cent this summer. The industry regulator confirmed on Friday that annual energy bills for millions of households on the standard tariff - with typical average usage - will drop from £1,849 to £1,720 from July 1 - a reduction of £129 over the coming year (£10.75 per month).
However, Advice Direct Scotland, which runs the national energy advice service energyadvice.scot, warned that Scottish households are still paying over £500 a year more for gas and electricity than they were before the energy crisis hit, despite a fall in the energy price cap.
The charity said while the fall was welcome, many people are still struggling with record levels of debt after new figures found that it received 2,580 inquiries related to energy debt and disconnections in the 12 months to April 2025, a 59 per cent increase on the level recorded two years earlier in 2023.
Advice Direct Scotland is urging anyone worried about energy-related debt to contact its team of experts, who can provide free, impartial, and practical advice.
It has been campaigning for a social energy tariff to be introduced across the UK, which would automatically put the most vulnerable customers on the cheapest deals.
Eligibility for such a tariff could be determined by factors such as whether members of a household are in receipt of benefits or are on low incomes.
Conor Forbes, policy director at Advice Direct Scotland, said: 'News of lower gas and electricity prices is always welcome, but it is cold comfort for customers who are paying so much more than they were before the energy crisis began.
'Many people are still struggling with the cost of living and are saddled with energy-related debts, and it could still be years before energy prices fall to pre-crisis levels.
'We'd encourage people to do whatever they can to keep their bills down, by finding out exactly how much they are paying and checking if there are cheaper options available.
'Taking regular meter readings and monitoring the level of your direct debit are as important as ever. If you have a smart meter, ensure it's working.
'However, a longer-term solution to the scourge of fuel poverty is a UK-wide social energy tariff, which would automatically put vulnerable people on the cheapest deal.
'The important thing to remember is that nobody should struggle alone, and help is available. Anyone experiencing difficulties should visit www.energyadvice.scot or call 0808 196 8660 for assistance.'
Advice Direct Scotland is also highlighting differences in regional standing charges, putting Scottish consumers at a disadvantage.
Revised standing charges from July will result in residents in southern Scotland paying 54.25 pence per day for electricity, compared to their counterparts in London who will pay 43.76 pence.
A larger proportion of Scots also lack access to the gas grid, relying on the more expensive electric rate for heating and cooking.
In southern Scotland, the gas unit rate will decrease to 6.27 pence per kilowatt-hour (kWh), while electricity will be priced at 24.53 pence.