{"id":441227,"date":"2026-02-23T13:13:14","date_gmt":"2026-02-23T13:13:14","guid":{"rendered":"https:\/\/www.newsbeep.com\/uk\/441227\/"},"modified":"2026-02-23T13:13:14","modified_gmt":"2026-02-23T13:13:14","slug":"energy-crisis-cost-scottish-economy-11bn-study-finds","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/uk\/441227\/","title":{"rendered":"Energy crisis cost Scottish economy \u00a311bn, study finds"},"content":{"rendered":"

New figures show the recent spike in energy prices cost Scotland\u2019s economy \u00a311bn, leading to renewed calls for the country to end its \u201cdependence on international fossil fuels\u201d.<\/p>\n

A new report by the Energy & Climate Intelligence Unit (ECIU) calculated the direct additional costs faced by businesses, households and other \u201cenergy consumers\u201d between 2021 and 2024 as a result of the energy crisis.<\/p>\n

This saw wholesale gas prices soar in the wake of Russia\u2019s invasion of Ukraine, while the price of road fuel rose due to a spike in oil prices.<\/p>\n

The analysis shows the crisis cost Scottish households an additional \u00a35.8bn in excess energy costs, which the ECIU said equates to around \u00a32,260 per household, or 70% of a typical Scot\u2019s annual spend on food and non-alcoholic drinks.<\/p>\n

Those in areas with the lowest average household incomes were also found to have spent a greater proportion of their income on energy on excess energy costs than people in richer areas.<\/p>\n

Industry faced additional costs of \u00a31.8bn, with Glasgow (\u00a3800m), Edinburgh (\u00a3740m), the Highlands and Islands (\u00a3560m) and Aberdeen (\u00a3390m) seeing the biggest spikes.<\/p>\n

Meanwhile, the commercial, agricultural and public sector organisations had to absorb an extra \u00a32.6bn.<\/p>\n

The remaining \u00a30.8bn related to non-domestic road fuels.<\/p>\n

The ECIU said the findings expose Scotland\u2019s \u201cdeep vulnerability to global oil and gas markets\u201d, adding that many energy-intensive industries continue to face high industrial energy costs.<\/p>\n

It pointed to a recent report showing the UK has some of the highest energy costs in Europe, largely because of its relative dependence on gas.<\/p>\n

It also flagged previous IMF analysis suggesting the UK\u2019s dependence on imported fossil fuels left it the worst-hit economy in western Europe by the spike in prices which followed the Russian invasion of Ukraine.<\/p>\n

The report stated: \u201cOur findings show a significant burden placed on Scottish consumers during the crisis, highlighting the risks for all energy consumers of reliance on volatile fossil fuel markets.\u201d<\/p>\n

It added: \u201cWhile there has been some progress made on reducing demand for gas through building more renewables during the crisis, progress on shifting away from gas boilers for heating and reducing dependence on oil and gas in the industrial sector remains slow.<\/p>\n

\u201cIn an increasingly uncertain world, this raises questions about whether Scotland is prepared for another crisis.\u201d<\/p>\n

Professor Tavis Potts, co-coordinator at the Just Transition Lab at the University of Aberdeen, said: \u201cAnybody who has paid a gas bill over the past few years \u2013 businesses and families alike \u2013 has felt the impacts of Scotland\u2019s reliance on oil and gas.<\/p>\n

\u201cDrilling for more North Sea gas won\u2019t fix this underlying problem or lower bill costs for consumers or industry as output is too low to influence prices that are set in global markets.<\/p>\n

\u201cWith most of the North Sea gas resource having been extracted, future marginal finds could only supply a fraction of the UK\u2019s future demand \u2013 and it won\u2019t make any difference to bills with increasing reliance on imports.<\/p>\n

\u201cTo shield energy consumers from future energy price shocks in an increasingly uncertain world, lowering demand through renewables and other net zero technologies is key.<\/p>\n

\u201cWind power cut UK wholesale day-head prices by a third last year and with recent offshore wind auctions delivering at scale, this effect is set to increase.\u201d<\/p>\n

Mercedes Villalba, Labour MSP for the North East of Scotland, described the findings as \u201cdamning\u201d.<\/p>\n

\u201cThey reveal the immense cost of our continued dependence on international fossil fuels for households across Scotland,\u201d she said.<\/p>\n

\u201cWhat\u2019s more, the ECIU makes clear that working-class communities bear the brunt of our government\u2019s failure to accelerate a just energy generation.\u201d<\/p>\n

Minister for Energy Consumers Martin McCluskey said: \u201cThis report shows exactly why we need to push ahead with our clean power mission to bring down the cost of energy and guarantee home grown, clean power for our country.<\/p>\n

\u201cWe have secured enough homegrown clean energy in our recent auction to power the equivalent of 16 million homes, protecting households from future price shocks.<\/p>\n

\u201cAlongside that, our Warm Homes Plan \u2013 backed by \u00a315bn of funding \u2013 will cut the cost of heating homes in Scotland, making homes warmer, bills lower, and our energy system more secure.\u201d<\/p>\n

The Scottish Government\u2019s Energy Secretary Gillian Martin said: \u201cFundamentally, energy prices remain high compared to pre-2022 levels, and despite UK Government promises to bring them down.<\/p>\n

\u201cScotland is an energy rich nation but shamefully, 31% of our population are in fuel poverty. We must have the full powers of independence to make our energy wealth work for our people.<\/p>\n

\u201cIn the meantime, we have worked with stakeholders to develop a social tariff in the form of an automatic and targeted discount on energy bills to address unaffordable bills at source, which the UK Government must urgently adopt. Under our proposals, which have cross sector support, 660,000 households in Scotland would see their estimated fuel bills go down by an average of \u00a3700.<\/p>\n

\u201cUntil that happens, we will continue to do all that we can within our powers to tackle fuel poverty and support households that are struggling, particularly in rural communities.\u201d<\/p>\n

She added: \u201cWe are investing \u00a3300m this year into improving the heating and energy efficiency of our homes and buildings.<\/p>\n

\u201cAnd this winter we will invest over \u00a3197m in our Winter Heating Benefits, with more than 1.5 million payments already made to help households with their energy bills this winter.\u201d<\/p>\n

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