Long and difficult winter ahead for Scots under new Ofgem price cap

Glasgow, Scotland – August 23, 2024:

Scottish households are facing another “extremely long and difficult” winter after Ofgem confirmed that the energy price cap is due to rise significantly.

Advice Direct Scotland, which runs the national energy advice service energyadvice.scot, said some customers are now facing the prospect of higher bills before they have even paid off debts built up last year.

Energy regulator Ofgem announced on Friday that it will raise its cap on the amount suppliers are able to charge from £1,568 to £1,717, effective from October 1.

This is a 10 per cent increase on the current level and will see the average bill rise by around £149 per year.

Previous forecasts have also suggested that the price cap will rise again in January, meaning that the pressure on consumers will not ease until spring next year at the earliest.

Advice Direct Scotland said the persistently high cost of gas and electricity underlined why the UK needs a social energy tariff, which would automatically put the most vulnerable customers on the cheapest deals.

The charity has been campaigning for the UK Government to work with energy suppliers to introduce the policy.

Eligibility for the tariff could be determined by factors such as whether members of a household are in receipt of benefits or are on low incomes.

Advice Direct Scotland is also highlighting differences in regional standing charges, putting Scottish consumers at a disadvantage.

Revised standing charges from October will result in residents in southern Scotland paying 64.17 pence per day for electricity, compared to their counterparts in London who will pay 41.59 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 increase to 6.16 pence per kilowatt-hour (kWh), while electricity will be priced at 23.96 pence. Advice Direct Scotland is urging households to review how much they are paying and check whether there are better tariffs available.

However, it is also concerned that many of the best value deals being offered by suppliers are aimed at more affluent households, while others are only available to those with an installed smart meter.

The charity is encouraging Scots to check the accuracy of their bills in case they are facing higher charges than they should be, based on estimated usage.

Those with smart meters are being urged to make sure the device is working, while those with traditional meters should submit gas and electricity readings to avoid overcharging.
energyadvice.scot provides free, impartial, and practical advice on energy bills to anyone in Scotland.

Advisers can be contacted at www.energyadvice.scot and on freephone 0808 196 8660, Monday to Friday, 9am to 5pm.

Andrew Bartlett, Chief Executive Officer at Advice Direct Scotland, said: 

“The news that higher gas and electricity prices are on their way, just as the summer comes to an end and people start to turn their central heating back on, is an unwelcome reminder that the energy crisis is still far from over.

“For many Scottish households, the winter ahead will be extremely long and difficult, with no respite in the form of cheaper prices likely to arrive until spring 2025 at the earliest.

“To make matters worse, many are still struggling with the cost of living and are saddled with energy-related debts that they built up last winter and have been unable to pay off.

“For the past six months we have been calling for a UK-wide social energy tariff, which would go some way to fixing the country’s broken energy market and lifting people out of fuel poverty. It is a real shame that so far, no action has been taken.

“People 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.

“Taking regular meter readings and checking the level of your direct debit are as important as ever. If you have a smart meter, ensure that it is working.

“The most 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.”

NOTES

Advice Direct Scotland is a charity which runs the national advice service advicedirect.scot. Advice is available to everyone in Scotland, at no cost, regardless of personal circumstance.

Advice related to energy issues is available at www.energyadvice.scot and on freephone 0808 196 8660, Monday to Friday, 9am to 5pm.

The website also includes an online knowledge centre for Scots, with information on:

• Billing and meters

• Complaints and disputes

• Grants and assistance

• Scams and fraud

• Loss of energy supply

• Switching suppliers.