ScottishPower announces energy price rise

ScottishPower has followed competitors and announced a price rise effective from 2nd February 2008. The increases – 15% or £89 for gas and 14% or £53 for electricity – will be on its standard tariff and will affect around half of its 5.2 million customer accounts according to independent price comparison and switching service, uSwitch.com. This will add an extra £141 on to the average dual fuel customer’s household energy bill, which is now set to rise from £959 to £1,100.

Ann Robinson, Director of Consumer Policy at uSwitch.com, comments: “Today’s announcement will come as no surprise to consumers - a price hike was inevitable from the day that other suppliers put their prices up.

“Following today’s move, ScottishPower is going to offer better value for those who like to pay by monthly direct debit or who can move online. Those looking to minimise the impact of higher energy costs on their household budget should seriously consider taking the following steps: move to dual fuel, pay by direct debit and go online. We have now seen all but two suppliers increase prices with an assurance from Scottish and Southern Energy that it will not put its prices up until at least the end of March. With savings of up to £325 to be made - now is the time for consumers to put some competition back into the market.

“ScottishPower’s increases are in line with those brought in by rivals, which suggests that we are on track for household energy bills to exceed £1,000 across the board. The question now is whether suppliers will be prepared to drop prices again if wholesale prices should fall, as they did last year, or whether the £1,000 bill is back for good.”