Energy bills set to drop by £130 for thousands of Scots – but there's a catch
ENERGY bills for a typical household are set to fall by seven per cent, it emerged today.
Regulator Ofgem announced the price cap will be reduced from July meaning typical charges will drop from £1,849 to £1,720.
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Energy bills are set to fall by seven per cent in July
Credit: PA
But consumer experts warned households will still be nearly £600 worse off than before the energy crisis despite bills falling by £129.
And charities warned that the energy market is still "broken", while growing numbers of Scots households were in arrears with power bills.
The new price cap is still £582 more than the £1,138 level before the energy crisis hit in autumn 2021 - an increase of 51 per cent.
Conor Forbes, policy director at Advice Direct Scotland, said: 'News of lower gas and electricity prices is always welcome, but it is cold comfort for customers who are paying so much more 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 it could still be years before energy prices fall to pre-crisis levels."
Citizens Advice Scotland chief executive Derek Mitchell said: 'Our energy market is broken, and thousands of people are facing mounting energy debt.
'We need to see long-term solutions that will enable all of us to heat our homes in a way that's affordable. We have called for a new social tariff to be applied to bills for low-income households, and for a robust energy debt write-off scheme to help those people who were forced into debt just to pay their bills."
Tim Jarvis, director general of markets at Ofgem, said: "A fall in the price cap will be welcome news for consumers, and reflects a reduction in the international price of wholesale gas. However, we're acutely aware that prices remain high, and some continue to struggle with the cost of energy."
Offgen reminded householders that they don't have to pay the price cap as "there are better deals out".
Mr Jarvis added: "It's important to shop around, and talk to your existing supplier about the best deal they can offer you. And changing your payment method to direct debit or smart pay as you go can save you up to £136."
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The price cap began to rise in October 2021 when wholesale gas prices increased by 50 per cent.
In February 2022, Russia's invasion of Ukraine plunged energy markets into turmoil, and the cap peaked at £4,279 in January 2023.
Before last July's General Election, Sir Keir Starner said people should be saving around £400 to £500 on their bills by 2029 due to his plans for renewables investment via GB Energy.
But doubt has been cast on whether the public-owned firm can prompt a fall in household costs, partly due to wider global forces buffeting energy markets.
The price cap news comes after whopping bill increases including council tax - up by average of 9.6 per cent, or £135 for a Band D home- and Scottish Water charges rising by 9.9 per cent or an average of £44.
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