SCOTS families already struggling with gas and electricity bills face a fresh financial shock after Ofgem confirmed that the energy price cap is due to rise again in April.
Advice Direct Scotland, which runs the national energy advice service energyadvice.scot, said persistently high costs are “heaping more debt onto people who cannot afford it”.
Energy regulator Ofgem announced today that that the cap on what suppliers can charge will rise from £1,738 to £1,849 from April 1.
This is a 6.4% increase on the current level and will see the average bill rise by £111 per year. Forecasts suggest the price cap will fall in July, before rising again in October.
The new price cap is £711 more than the amount that households were being charged before the energy crisis hit in the autumn of 2021, an increase of 62%.
Advice Direct Scotland is urging anyone worried about energy-related debt to contact its team of experts, who can provide free, impartial, and practical advice.
The charity said the persistently high cost of gas and electricity underlined why the UK needs a social energy tariff, which would automatically put the most vulnerable customers on the cheapest deals.
It has been campaigning for the UK Government to work with energy suppliers to introduce the policy for more than a year, and is contributing to a working group set up by the Scottish Government on the issue.
Eligibility for such a tariff could be determined by factors such as whether members of a household are in receipt of benefits or are on low incomes.
Conor Forbes, policy director at Advice Direct Scotland, said: “Over the winter, thousands of people across Scotland who were already struggling have been racking up energy debts due to the cost of their heating bills.
“The news that energy is going to get even more expensive in April will come as a real shock and will have the result of heaping more debt onto people who cannot afford it.
“People are paying hundreds of pounds per year more than they were before the energy crisis hit, and this situation simply cannot continue.
“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.
“Our view is that the most vulnerable households should automatically be placed on the cheapest energy deal through an opt-out system, so they do not have to take any action to benefit.
“For now, people can 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 that it is working.
“The most important thing to remember is that nobody should struggle alone, and help is available.
“Anyone experiencing difficulties should visit www.energyadvice.scot or call 0808 196 8660 for assistance.”
Advice Direct Scotland is also highlighting differences in regional standing charges, putting Scottish consumers at a disadvantage.
Ofgem is currently reviewing the standing charge system after a consultation showed a majority of the public opposes them.
Revised standing charges from April will result in residents in southern Scotland paying 56.5p per day for electricity, compared to their counterparts in London who will pay 46.2p.
A larger proportion of Scots also lack access to the gas grid, relying on the more expensive electric rate for heating and cooking.
In southern Scotland, the gas unit rate will increase to 6.9p per kilowatt-hour (kWh), while electricity will be priced at 25.8p.
Advice Direct Scotland is urging households to review how much they are paying and check whether there are better tariffs available.
The charity is also encouraging Scots to check the accuracy of their bills in case they are facing higher charges than they should be, based on estimated usage.
Those with smart meters are being urged to make sure the device is working, while those with traditional meters should submit gas and electricity readings to avoid overcharging.
