Scottish household energy prices to jump by 13% from July

Ofgem’s price cap is to rise by 13% from July 1 driven by the ongoing conflict in the Middle East, the regulator has said.

It comes as a record number of households in Scotland are in energy debt, according to Consumer Scotland.

When prices jump in July, typical households will see a rise of £18 a month for homes using both electricity and gas.

Customers will see a smaller price increase of around 5% on their electricity bills compared to gas bills, which are rising by 24%, Ofgem said.

Based on the energy use of a typical domestic household, from July the price cap will rise by £18 a month for the average household using both electricity and gas if this level was sustained for a year.

The current price cap for a typical household paying by direct debit for gas and electricity is £1,641.

Consumer Scotland’s latest Energy Affordability Tracker survey of around 1,600 adults, conducted between January and February, found affordability remains a “significant concern” for households across the country.

Consumer Scotland said 19% of households reported being in energy debt, compared with 9% in 2024.

The survey also found most debt is less than a year old and does not involve formal repayment plans or recovery action, although more than a third of those in debt said they had been placed on a prepayment meter as a result.

Affordability pressures remain widespread, with 38% of households saying they were unable to heat their home to a comfortable level, while 16% reported difficulty keeping up with bills.

The report found challenges were particularly severe among households facing financial or health pressures, including people receiving means-tested benefits, low-income households, working-age households and homes where someone has a disability or health condition.

Consumer Scotland said the survey was carried out before the conflict in the Middle East, which it warned is already having an impact on some consumers and is likely to have further consequences for affordability and debt in the coming months.

Sam Ghibaldan, the organisation’s chief executive, said: “Support for consumers to address affordability and debt challenges is critical in ensuring homes remain heated to safe and comfortable levels.

“The current energy price cap, which is set until the end of June, continues to provide protection for most consumers. However, prices are expected to rise from July adding further pressure for households already struggling with their energy costs.

“We welcome the steps the UK Government has recently taken to make sure more households in Scotland get the Warm Home Discount automatically, and the removal of some of the cost of levies from energy bills, and we support Ofgem’s plans to introduce a Debt Relief Scheme, but it is clear from our Energy Tracker that more action is required.

“We are developing proposals to present to the UK and Scottish governments setting out how support could be targeted at households facing the greatest affordability challenges through improved use of UK-wide and Scottish data.

“We also support stronger engagement by energy suppliers with consumers who are in debt to establish manageable repayment plans.”

Ofgem chief executive Tim Jarvis said: “Today’s price change reflects continued volatility in global energy markets. This means higher wholesale gas prices, driven by ongoing conflict in the Middle East, is impacting the price we pay for energy.

“We understand many will be concerned about rising prices. While energy use typically falls over the summer months, there are still practical steps households can take to manage costs, including exploring fixed tariffs or changing their payment method. Smart meter customers can also take advantage of half price or cheap electricity at the weekends.

“While our energy supplies remain secure, the best way to limit this exposure is by investing in our energy network. That’s why we’re unlocking the funding needed for the biggest transformation of our lifetime to deliver a system that is secure, resilient and works for consumers across Great Britain.”