SCOTTISH households are set to still be paying hundreds more on gas and electricity than before the energy crisis even though Ofgem is lowering their energy price cap again.
As of July 1st, the regulator has announced a 7.2 per cent decrease for its cap on what suppliers can charge, going from £1,690 to £1,568.
Although this should see the average energy bill drop by about £122 each year, it is still £430 higher than what was being paid before the energy crisis in autumn of 2021.
Previously done estimates suggest that this price cap may rise again when October comes.
The charity Advice Direct Scotland, who runs the national energy advice service energyadvice.scot, says that despite this decrease being welcome, the bills will likely keep rising in the future.
They also believe that a social energy tariff, which would give more vulnerable customers cheaper deals automatically, is needed due to the UK’s high gas and electricity costs.
They suggest that eligibility for this might be decided by factors like if household members have low income, they have been campaigning for the UK government to work with suppliers to implement this.
The charity has also drawn attention to the differences in regional standing charges, people living in southern Scotland will be paying 63.33 pence a day on electricity while Londoners pay 40.79 pence despite the drops.
Many Scots also lack gas grid access and have to use the more expensive option of electricity for heating and cooking.
Advice Direct Scotland suggests that people check what they are paying to see if they have access to better tariffs.
They say they are concerned that suppliers may be offering their best deals to better off households and those with a smart meter.
Hazel Knowles, energy lead for Advice Direct Scotland, stated: “Lower gas and electricity prices will come as a relief for households, but bills remain significantly higher 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 there is no sign of energy prices falling to pre-crisis levels any time soon.”
“This is why 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.”
“People can also 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 its working.”
