06/01/2014

ScottishPower To Reduce Its Prices

ScottishPower has said it is to reduce its domestic gas and electricity prices from 31 January.

The announcement means that a typical dual fuel bill for household customers will fall by £54.

It is made up of a 3.3% reduction in standard tariffs for dual fuel customers (£42 per annum), plus a universal rebate to be paid to customers in line with the government timetable (£12 per annum). However, the reduction only partly off-sets a price increase of 8.6% which came into force in December 2013.

The company has said the reduction will not apply to most customers who are on fixed rate tariffs, but some 2.2 million households will benefit from the price cuts.

Commenting on the news, Neil Clitheroe, ScottishPower's CEO of Energy Retail and Generation, said: "Following the Government's recent announcement on reducing the impact of green and social levies on consumer energy bills, we will be passing these cost reductions on to customers this month.

"We are pleased that the Government has taken sensible measures to curb these rising costs.

"We recognise that we need to continue to work hard to reduce bills for our customers through offering competitive fixed priced products and comprehensive energy efficiency advice.

"As part of this ongoing commitment, we will try to avoid any further price rises in 2014 but this will depend on whether there are increases in wholesale energy prices or other costs outside of our control."

ScottishPower is the fifth of the 'Big Six' energy suppliers to announce a cut in its prices. British Gas and SSE have said their price cuts will apply to all their customers, whatever their tariff, while EDF, E.On and Scottish Power, have applied the price reductions only to those on standard, or variable, rates. Npower has said it is reviewing its prices.

(JP)

Related UK National News Stories
Click here for the latest headlines.

07 June 2011
ScottishPower Increases Prices
ScottishPower has announced increases for domestic gas and electricity prices following a prolonged rise in wholesale energy costs since November 2010 and continuing volatility in global energy markets. From 1st August 2011 domestic gas bills will increase by an average of 19% and domestic electricity bills by an average of 10%.
10 June 2014
Call For Energy Suppliers To Explain Prices To Customers
Energy regulator Ofgem has called on the Big Six energy suppliers to explain to their customers what impact falling wholesale costs will have on their energy prices.
16 November 2012
Prices Continue To Rise For Energy Customers
The average annual combined British Gas electricity and gas bill is now £1,336, £80 a year more following a price rise introduced on November 16. The rise comes just over a week before 3 million npower customers will see their gas and electricity prices increase by 8.8% and 9.1% respectively.
12 October 2010
UK Inflation Remains At Current Rate
According to the Office for National Statistics (ONS), UK Consumer Prices Index (CPI) inflation remained unchanged at 3.1% in September. Including a higher proportion of housing costs, the Retail Prices Index (RPI), fell back slightly to 4.6%.
10 October 2013
SSE To Increase Tariffs By 8.2%
SSE has said it is to increase its household energy tariffs from 15 November 2013. Customers of the energy firm will see an average rise of 8.2% in gas and electricity prices. The company has said the rise is reflective of the higher costs of buying wholesale energy, as well as paying to deliver it to customers' houses, plus government levies.