The change represents a £117 fall on current levels, around £10 a month, but consumer groups warn the cut will do little to ease the ongoing affordability crisis facing households across Scotland.

The price cap sets the maximum unit rate and standing charge suppliers can levy on customers who are not on fixed‑rate deals. Ofgem said the latest reduction has been driven largely by government budget decisions, including the removal of £150 in policy costs from bills.

Tim Jarvis, Ofgem’s director general for markets, said the fall would be “welcome news for many households”, noting that wholesale energy prices have eased and that investment in the UK’s energy networks is continuing.

However, he stressed that consumers remain exposed to volatile global gas markets.

“The price cap protects households from overpaying for energy, but it’s a safety net,” he said. “Last year, consumers on fixed deals paid around £115 less than the cap on average, so we’d encourage people to speak to their supplier about the options available.”

Ofgem also confirmed a spring pilot for lower standing‑charge tariffs, initially offered to eligible customers of EDF, E.ON, Octopus and British Gas, aimed at giving low‑usage households more choice.

Despite the reduction, Scottish households remain significantly worse off than before the energy crisis began in autumn 2021. The new cap of £1,641 is still £503 higher than pre‑crisis levels, and forecasts suggest a slight rise may follow in July.

Advice Direct Scotland, which runs the national energy advice service energyadvice.scot, said the cut would be “cold comfort” for households who have struggled through winter.

Craig Tobin, the charity’s head of business development and impact, warned that high bills have become “worryingly normalised”.

“Many have been building up debts to their energy suppliers, with other increases to the cost of living heaping pressure on already stretched domestic budgets,” he said. “People are paying hundreds of pounds more than before the crisis hit.”

The organisation renewed its call for a UK‑wide social energy tariff to ensure the most vulnerable customers are placed on the cheapest deals.

Citizens Advice Scotland (CAS) echoed concerns that the reduction falls far short of what is needed to make bills genuinely affordable.

CAS director of impact David Hilferty said advisers continue to see “the brutal reality” of unaffordable energy costs.

Between October and December alone, almost 3,200 people in Scotland required fuel vouchers to heat their homes or cook meals. Over the same period, nearly 1,200 sought help with energy debt — two‑thirds of whom were living with a serious health condition or disability. Average debts exceeded £2,300, rising to £2,800 in rural areas.

“This is the deeply damaging reality that people are being forced to endure, and it is not solved by today’s price cap announcement,” Hilferty said. “We need urgent, bold and targeted solutions… like a social tariff and a robust scheme for energy debt relief.”

Both Ofgem and consumer groups are encouraging households to review their bills, take regular meter readings, and explore whether switching or fixing could reduce costs. Last year, customers on fixed tariffs paid around £115 less on average than those on the price cap.

Advice Direct Scotland stressed that anyone struggling should seek help early. “Nobody should struggle alone,” Tobin said.

Consumer Scotland head of energy markets Barry Coughlan added: “This price cap announcement will bring lower costs for consumers offering some relief as energy bills fall to their lowest level since 2024.

“However, affordability and debt remain significant challenges for many households given the legacy of high energy bills and acute wider cost‑of‑living pressures.

“It is crucial that energy companies, the regulator and governments do all they can to support those customers who continue to struggle to pay their bills.

“The UK Government has extended the Warm Home Discount scheme, but we now need them to focus on the fundamental reform required including better targeted eligibility criteria taking account of energy consumption, energy efficiency and household characteristics including disability, medical needs, rurality and families with young children.”