Winter energy bills to hit three year peak as cost of heating oil remains high
Written by MartyM on 26 August 2026
26 AUGUST 2026
Get in touch if you’ve got a story you’d like us to look into. Send a WhatsApp or send an email.
Winter energy bills to hit three year peak as cost of heating oil remains high
Energy regulator Ofgem has announced the latest price cap.
It means an annual increase of £60 compared with the previous cap will take effect from October.
The cap sets an upper limit that providers can charge customers on a variable tarrif. Households on a fixed rate won’t be subject to the increase.
In Skye, Raasay and Lochalsh, many people rely on heating oil. It does not come under the price cap. The average cost for a litre is sitting above £1 meaning a cost of more than £1,000 to fill an average 1,000 litre tank.
Oil prices spiralled earlier this year in the wake of the US and Israel’s war on Iran. The price stabilised in July but has begun to climb again this month owing to more uncertainty in the region.
Donnie Mackay is Associate Affordable Warmth Advisor with ALI Energy, a charity with a base in Skye. He told Radio Skye:
“The biggest pressure on the price cap has actually been on the mains gas element, rather than electricity. Electricity prices are relatively stable, and VAT was cut from the prices starting from 1 October this year and that will have a minor effect on slightly reducing the cost. But overall, electricity between October and December looks relatively stable and pretty similar to current prices.”
Donnie Mackay, ALI Energy
Mr Mackay said most people will be more worried about the cost of heating oil.
“Most folk in Skye and Lochalsh don’t have mains gas. The key issue for us is the price of heating oil. Heating oil is still currently over £1 a litre. This is the highest it’s been for a long, long time and this is the biggest impact on Skye homes.”
Both the Scottish and UK Government contributed a combined £10m towards an emergency fund for households relying on heating oil earlier this year. The scheme is run by Advice Direct Scotland and is open until the end of September, or until the money runs out.
As well as the pressure from heating oil, Mr Mackay said he’s aware of several people still using the now defunct radio teleswitch meters.
“We reckon that there are still well over 300 radio teleswitch meters still active and installed in Skye and Lochalsh and there’s a strong possibility that people’s heating and hot water may not work but they won’t know yet because they won’t have tried it because we haven’t yet reached the winter.”
“Everybody with storage heaters should check that their heating and hot water works and if it doesn’t, contact ALI Energy or contact their energy company.”
He encouraged anyone seeking advice to get in touch.
“If anyone would like some further information or help or support, ALI Energy offers a free in home energy advice service for anyone who lives in Skye and Lochalsh. Laura and I have been the energy advisers on Skye for well over 10 years and we’re very happy to help folk. So, if people would like further assistance, they can call us on 01631 565 183 or go to the website.”
