The recent energy crisis cost Scotland's economy £11 billion, according to a new report by the Energy & Climate Intelligence Unit (ECIU). The study calculated the direct additional costs faced by businesses, households and other energy consumers between 2021 and 2024, following the surge in wholesale gas prices after Russia's invasion of Ukraine and a spike in oil prices.
Scottish households bore the brunt, facing an extra £5.8 billion in energy costs, equating to around £2,260 per household or 70% of a typical Scot's annual food spend. The report found that lower-income areas spent a greater proportion of their income on excess energy costs than richer areas.
Industry faced additional costs of £1.8 billion, with Glasgow (£800 million), Edinburgh (£740 million), the Highlands and Islands (£560 million) and Aberdeen (£390 million) hit hardest. Commercial, agricultural and public sector organisations absorbed an extra £2.6 billion, while non-domestic road fuels accounted for the remaining £0.8 billion.
The ECIU said the findings expose Scotland's “deep vulnerability to global oil and gas markets”, noting that the UK has some of the highest energy costs in Europe due to its reliance on gas. Previous IMF analysis suggested the UK was the worst-hit economy in western Europe by the price spike.
Professor Tavis Potts of the University of Aberdeen said: “Drilling for more North Sea gas won’t fix this underlying problem or lower bill costs... Wind power cut UK wholesale day-head prices by a third last year.” Labour MSP Mercedes Villalba described the findings as “damning”, while UK Energy Minister Martin McCluskey said the report shows why the government must push ahead with its clean power mission.
