Scottish households are bracing for another increase in energy prices as consultancy firm Cornwall Insight forecasts a slight rise in domestic energy bills starting in January 2025. According to the latest predictions, a typical household using an average amount of gas and electricity will see their annual bill increase by £19, bringing the total to £1,736—a 1% rise from the current £1,717.
The rise comes as energy regulator Ofgem is set to announce its next quarterly price cap on Friday. The price cap limits the maximum cost per unit of gas and electricity for 29 million households across England, Wales, and Scotland. However, it does not cap total bills, meaning larger households with higher energy usage will pay more than those in smaller homes.
Dr. Craig Lowrey, principal consultant at Cornwall Insight, told BBC News that while bills will remain “largely unchanged” from October levels, the lack of a significant drop in prices will be “disappointing” for many consumers. He added, “What we’ve been looking at were prices well above the historic norms,” noting that there is little sign of a return to pre-energy crisis levels.
The energy crisis, which saw prices soar following the conflict between Russia and Ukraine, continues to impact global markets. Cornwall Insight attributes the ongoing high prices to geopolitical tensions, bad weather conditions, and maintenance work on Norwegian gas infrastructure. The consultancy warns that higher energy prices may become “the new normal.”
Peter Smith, director of policy at National Energy Action (NEA), expressed concern about how vulnerable households will cope with the rising costs. “Many people are already rationing their energy use or building up debt to try to keep warm,” he said.
Looking ahead, Cornwall Insight expects a slight drop in the energy price cap in April 2025 and again in October 2025. However, with winter approaching and no significant relief in sight for consumers, many Scottish households may face continued financial strain during the colder months.
As the cost-of-living crisis continues to affect families across Scotland, charities are urging the government and energy companies to provide additional support for those struggling with rising energy costs.
