Energy prices rise in Scotland as ministers explore “social tariff” solution – Scottish Business News

SCOTTISH households are facing a significant increase in energy costs as new price cap changes take effect today (October 1 2024). The typical energy bill for customers o variable tariffs paying by direct debit will rise by 10%, reaching £1,717 – an increase of £149 compared to the previous cap.

This price hike comes at a challenging time for many Scottish families. with concerns growing about affordability as winter approaches. The increase will see gas prices capped at 6.24p per kilowatt hour (kWh) and electricity at 24.5p per kWh, up form 5.48p and 22.36p respectively. Standing charges will also increase to 32p a day for gas and 61p a day for electricity.

In light of these rising costs, Scottish ministers are actively engaging with energy firms to develop a “social tariff” aimed at reducing bills for vulnerable customers. 

While details are still being finalised, the social tariff could provide much-needed relief for pensioners, disabled individuals, and low-income families who face difficult choices between heating and eating this winter.

Ofgem, the energy regulator, has acknowledged the impact of these price rises on consumers. The regulator is currently reviewing standing charges and has published a paper outlining potential ways to reduce these fixes costs for households. 

Energy experts are urging consumers to submit up-to-date meter readings to ensure accurate billing during the transition to higher rates. Those struggling to pay are advised to contact their supplier or seek assistance from organisations like Home Energy Scotland.

Consumers are also encouraged to check if they are eligible for any support schemes or to consider switching tariffs if better options are available. 

Critics argue that more fundamental changes are needed to protect consumers in the long term. Matthew Lee of Citizens Advice Scotland stated: “The broken energy market badly needs reform, and the UK and Scottish governments both need to look again at the support that is available to low income households,”

“Energy companies too should play their part by offering a social tariff for those on low incomes. Some have already done this but we need it to become the norm across the industry. And we also need more write-off schemes for people who are deep in energy debt with no way of repaying it.”

As winter approaches, the pressure is on both government and energy companies to find sustainable solutions to keep Scots warm without breaking the bank.