Energy price cap to rise 13% in July as households warn they are ‘out of options’

Energy price cap to rise 13% in July as households warn they are 'out of options'

Scotland faces another sharp increase in energy bills this summer after Ofgem confirmed the energy price cap will rise by 13% from 1 July, pushing a typical annual dual‑fuel bill from £1,641 to £1,862.

The regulator said the increase is driven by higher wholesale gas prices linked to the ongoing conflict in the Middle East.

Although prices remain well below the peak of the 2022 energy crisis, the rise represents an additional £221 a year for a typical household and comes amid record levels of energy debt and mounting concern about affordability across Scotland.

“Today’s price change reflects continued volatility in global energy markets,” Ofgem CEO Tim Jarvis said. “We understand many will be concerned about rising prices… there are still practical steps households can take to manage costs.”

Ofgem said electricity bills will rise by around 5%, while gas bills will jump by 24%, reflecting the growing share of renewable generation on the grid and reduced reliance on gas-fired power.

Around 40% of households are on fixed tariffs and will not be affected by the change.

Consumer Scotland warned the increase will deepen an already severe affordability crisis. Its latest Energy Affordability Tracker shows:

  • 19% of households are now in energy debt — more than double last year’s 9%
  • 38% cannot heat their home to a comfortable level
  • 16% struggle to keep up with bills
  • 36% of those in debt have been moved onto prepayment meters

Chief executive Sam Ghibaldan said the rise “means households across Scotland will face further pressure on already stretched finances”, adding that the volatility of fossil fuel prices “underlines why moving to low‑carbon technologies is a consumer protection priority”.

Consumer Scotland is calling for more targeted support, improved use of UK‑wide and Scottish data, and backing for Ofgem’s proposed Debt Relief Scheme.

Advice Direct Scotland described the rise as “one of the largest increases since the cap was introduced”, warning that many households are already struggling with arrears.

Craig Tobin, head of business development and impact, said: “People will be paying over £700 more per year than before the energy crisis hit five years ago. That is why we have been calling for a social energy tariff.”

Citizens Advice Scotland (CAS) said the rise will be “devastating” for thousands of households, with its network recording record energy debt levels in early 2026 — averaging £2,800, and more than £3,200 in rural areas.

CAS chief executive Derek Mitchell said high summer bills are often underestimated: “It’s tempting to think high energy costs don’t affect people in the summer. Yet last summer we provided over 2,000 emergency fuel vouchers.”

CAS is calling for urgent delivery of Ofgem’s debt relief scheme and a UK‑wide social tariff for low‑income and high‑usage households.

Environmental charity Changeworks warned that many households have already exhausted the practical steps available to cut energy use. Polling from last winter found:

  • 28% stayed in bed longer or went to bed earlier to avoid heating
  • 11% avoided staying at home to keep warm
  • 48% wore multiple layers indoors
  • 37% heated only certain rooms
  • 20% were late or unable to pay bills
  • 42% cut back on other essentials to pay energy costs

Chief executive Josiah Lockhart said people are “making impossible choices between essentials”, and called for greater investment in energy‑efficiency improvements and advice services.

Changeworks is urging households to seek support now, ahead of next winter, including checking tariffs, exploring grants, and getting help with debt management.

Calls grow for structural reform

Across the sector, there is growing consensus that the current price cap model is no longer protecting consumers from volatility in global gas markets.

Consumer Scotland, CAS and Changeworks all reiterated calls for a mandatory social tariff for vulnerable and low‑income households, reform of the energy price cap and greater investment in energy efficiency and advice services.

The organisation have also called for faster progress on low‑carbon heating to reduce exposure to gas prices.

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