Households are facing the prospect of another increase in energy bills as winter approaches, with Ofgem preparing to announce its latest energy price cap next week.
Scotland’s Energy Minister Stephen Gethins has called on the UK Government to provide greater support before the new cap takes effect for the period from October 2026 until January 2027.
Industry experts are predicting another increase, adding to concerns about household finances during the colder months when energy consumption typically rises.
Gethins argues the UK Government needs to go further than reducing VAT on household energy and has pointed to Labour’s previous promise to cut bills by £300.
He said:
“Energy costs are forcing too many families to make difficult decisions about household budgets.
“In an energy rich country like Scotland, that is simply unacceptable.
“The UK Government came to office promising to cut people’s bills by £300, yet bills are already more than £250 higher than they promised and they are going to go up even higher before winter, with experts predicting that the price cap will rise again.
“This needs to be a wake-up call for the new Prime Minister with Scotland’s energy sending hundreds of billions of pounds to the UK Treasury over the years, a modest £45 saving from cutting VAT cannot be the extent of his ambition.
“Households in Scotland need real support before winter.
“The Scottish Government is using our limited powers to invest in more energy efficient homes, tackle fuel poverty and meet our ambitious climate change targets and we have already helped thousands of households save between an estimated £300 and £500 a year.
“We are acting wherever we can.
“But while full energy powers still sit with the UK Government, it is Scottish households who are paying the price.
“Scotland’s energy must be in Scotland’s hands so we can bring down bills.
“Until that is the case, I am once again urging the UK Government to match our ambition and act now to help people with their energy bills.”
The intervention comes before Ofgem confirms the level of the cap that will apply during the opening months of the coming winter.
The price cap limits the amount suppliers can charge for each unit of gas and electricity under standard variable tariffs rather than setting a maximum household bill.
Actual bills therefore continue to depend on how much energy each household uses.
That distinction matters particularly during winter, when colder weather can leave households using substantially more energy even without further increases in unit prices.
The Scottish Government says its investment in improving the energy efficiency of homes has already helped thousands of households achieve estimated annual savings of between £300 and £500.
Gethins is now pressing the UK Government to introduce further measures before households enter another winter facing the prospect of higher energy costs.
