Ofgem’s New Price Cap Brings Relief, but Scots Still Paying More for Energy
Today, Ofgem announced a reduction in the price cap for energy suppliers, effective from July 1, dropping from £1.690 to £1,568—a decrease of 7.2%. While this translates to an average annual bill reduction of £122, households in Scotland are still facing a £430 increase compared to pre-energy crisis rates in autumn 2021.
It’s anticipated that this price cap will see another increase in October and maintain stability into January 2025. Hazel Knowles, energy lead at charity Advice Direct Scotland, commented on the situation, noting that while lower prices are welcomed, the burden of energy-related expenses remains high, contributing to financial challenges and energy-related debts for many households.
Advocating for a UK-wide social energy tariff, the charity emphasizes the need for policies that alleviate the strain on vulnerable consumers, potentially tying tariff rates to household benefits or income levels. Ofgem’s revised cap, however, places Scottish households at a disadvantage compared to their counterparts in London, with disparities in electricity costs.
Advice Direct Scotland encourages households to review their energy expenditure and seek better tariff options, although they caution about accessibility issues for certain deals based on income or meter type. Regular meter readings, direct debit checks, and smart meter functionality are highlighted as crucial steps in managing energy costs and avoiding financial strain.
