SimplySwitch.com: Scottish Power cuts prices

From 15th June 2007, Scottish Power customers will see their bills cut by up to 16.5% for gas and up to 5.5% for electricity.

Scottish Power is the last of the ‘big six’ suppliers to announce a price cut.

Karen Darby, founder of SimplySwitch.com, the price comparison and switching service, comments: “After substantial cuts to wholesale prices and criticism from Ofgem and Energywatch, Scottish Power has finally followed its competitors and cut prices.

Now is the time to switch

“Research carried out for SimplySwitch.com found that consumers are more likely to switch suppliers when bills are rising (62%) than when bills are falling (35%).

“Switching not only reduces household bills, but also helps boost competition and ultimately drives down prices. For the vast majority of customers, there are no penalties for leaving an energy company. Now that all the suppliers have announced a cut to their standard tariffs, it’s a level playing field – there’s never been a better time to switch.

“There are many confusing messages out there, with each supplier making their own claims about why their deal is the best. This latest announcement from Scottish Power is a prime example of this – the headline price reductions might look tempting, but these will vary by region. The only way to be 100% certain that you are on the best deal is by switching with an independent, Energywatch accredited source.

Standard versus online prices

“Consumers shouldn’t be swayed by energy companies’ much-publicised ‘standard tariff’ price cuts. The real price war is online and consumers will save a great deal more money switching to an online tariff. Over 50% of UK households are now hooked up to broadband. Managing your bills online is extremely easy and it could save you hundreds of pounds.

“If you don’t wish to go down the online route, remember that, even though some tariffs are set to drop, as long as you remain with your original gas or electricity supplier, you are paying more than is necessary. As the current price war comes to a head, hopes of large-scale price cuts are fading fast. However, we do expect more cuts later in the year when energy companies will, once again, battle it out to grab the headlines.

The result of the price war

“While the recent price changes have resulted in better deals for the consumer, energy prices still have long way to fall before customers can recover the extra amount they have had to pay in the last three years. Since January 2004, gas prices had risen by over 80% and electricity prices by over 50%. So far, none of the energy suppliers has reduced prices by anywhere near the amount that they raised them in the preceding 12 months, nor has anyone reduced prices in line with the drop in wholesale costs. These recent price drops only go a small way towards redressing the balance.”