Price cap fall welcome but consumers coping with rising energy debt

Consumer Scotland comments on latest Ofgem announcement.

Energy regulator Ofgem has announced the annual energy bill for a typical household will fall to £1,720 from £1,849 in July – a decrease of £129 or 7%.

Consumer Scotland Director of Policy and Advocacy Douglas White said:

“Although prices will fall in July giving some relief for Scottish households, many consumers are still struggling to cope with the impact of historically high energy bills – particularly those with higher energy needs such as disabled people, the terminally ill and those with health conditions.

“One of the legacies of high bills has been a growth of energy debt and arrears in the GB domestic market which now exceeds £3.8bn – a record high.

“Our latest research shows 15% of respondents are in energy debt or arrears this year - equivalent to 383,000 households in Scotland – up from 9% last year.

“Despite today’s announcement of a fall in the price cap, these debt figures highlight that there is still a clear need for further energy bill support targeted at those consumers who need it most.

“Consumer Scotland supports ongoing work by regulator Ofgem to develop a Debt Relief Scheme and we want to ensure any scheme is fair, appropriate and meets the needs of consumers in Scotland.

“We have previously recommended that the UK and Scottish governments take action to provide more targeted affordability support for those consumers who need it the most as quickly as possible, and this remains a key priority.

“As well as reforms to affordability support, a number of broader changes are underway in the energy retail market. These include a growing number of tariffs that provide opportunities for consumers to reduce their bills by varying when or how they use energy.”

Background

Insights from the 2025 Energy Affordability Tracker: Energy affordability and debt

Consumer Scotland has been tracking affordability of energy bills since March 2022. The current report summarises the findings from the seventh wave of our Energy Tracker survey, which was undertaken between 31 January and 14 February 2025.

Consumers struggling with their energy bills should contact Advice Direct Scotland which provides free advice on the financial support available from Monday to Friday between 9am and 5pm. Their advice line is 0808 196 8660.