ScottishPower unveils 8.6% energy price hike – Updated

The move means only two of the UK’s big six energy suppliers have yet to increase their prices in the run up to winter

ScottishPower is the latest of the big six to announce a gas and electricity price rise

ScottishPower has followed the lead of British Gas, npower and SSE and blamed a combination of rising wholesale costs, higher distribution charges and government subsidies for the increase.

The change in prices will be implemented as of 6 December and, according to ScottishPower’s press release, will result in an increase of £113 per year on the average dual fuel bill.

The below table shows the average bill for a medium user* before and after the announced price rises.

Average household energy bills:

Supplier Current bill size New bill size
British Gas £1,340 £1,471
EDF Energy £1,332 £1,332
E.ON £1,370 £1,370
npower £1,352 £1,491
ScottishPower £1,368 £1,480
SSE £1,354 £1,460
Average £1,353 £1,434

Source: uSwitch.com

ScottishPower CEO: ‘No other option’

Neil Clitheroe, ScottishPower’s CEO of Energy Retail and Generation, said “The cost of purchasing and delivering energy to homes across Britain has risen significantly this year. With an increase in costs for delivering compulsory schemes to reduce carbon emissions and improving energy efficiency in homes, we unfortunately have no other option than to pass these on by increasing our prices for customers.

“We understand that these are difficult times for many families, and we have done what we can to hold our prices for as long as possible. Recently we announced a range of measures to help our most vulnerable customers this winter. We will now write to every customer who will be impacted by the price increase, and we would encourage anyone who is concerned to contact us so we can discuss their options.”

One supplier has pledged to freeze prices this winter

The rise means that EDF and E.ON remain the only two of the big six energy suppliers in the UK not to announce a price rise. This does not, however, mean that the latter won’t hike gas and electricity prices, in fact both are expected to announce a rise as we get closer to winter.

The largest independent supplier in the UK, First Utility, is the only energy provider to have pledged not to increase prices this winter. The company also recently launched its “Fight the Power” campaign which calls on energy suppliers to shorten the length of time it takes to change energy provider.

Consumers to be ‘buffeted by suppliers in very quick succession’

Ann Robinson, director of consumer policy at uSwitch said: “Unfortunately, the floodgates have opened and it looks like consumers are going to be buffeted by suppliers in very quick succession. The danger is that these hikes are sweeping households towards a cliff edge – when bills hit £1,500 a year this will be the tipping point where many will have no choice but to go without heating. This will have a serious impact on health and well-being.

“I would urge consumers to sit up and take action. If these price hikes are going to be a deal-breaker for you then I would urge you to look at one of the competitive fixed price tariffs currently available which can help you to freeze your prices for anything up to four winters. And rather than switch your heating off or take chances with your health by going cold, think about making your home energy efficient instead. If cost is a problem, look at the Government’s Green Deal scheme or speak to your supplier.

“Using less energy and paying less for what you do use are everyone’s best protection against the high cost of energy today.”

*Based on a medium user consuming 3,300 kWh of electricity and 16,500 kWh of gas on a standard dual fuel tariff, paying quarterly by cash or cheque, with bill sizes averaged across all regions

Read more

npower raises gas and electricity prices by 10.4%

Co-operative Energy raises gas and electricity prices by 4.5%

Join the conversation

  • j

    What happens to those of us who are waiting to switch to scotish power? I decided to switch them last week (fixed until march 2015) but nothings gone through yet. Will I still get the ‘old’ fixed rate?

    • Manj Dhendsa

      Did you get a response to this? I’m in the same boat.

      Thanks,
      Manj

    • Michele Martinelli

      What you switch to is what you get – if you picked a fixed price plan advertised at certain prices then that’s what you’ll get.

    • Folly

      Of course you will get the rates offered otherwise that is a whole new offer
      and if they were to try that you should pull out and go with another supplier. I also switched to Scottish power fixed rate and am mid switch but the prices they offered when you signed up are the prices they must honour.

  • Dash

    I’m on a variable tariff with OVO and the current Scottish Power fixed rate is favourable but if I initiate the switch now via uSwitch will I be able to avoid the price hike and pay the current rates?

    • Michele Martinelli

      If you switch to a fixed plan while it is still being offered here – http://www.uswitch.com/gas-electricity/ – then that’s the plan you’ll be switched to. Prices won’t go up.

  • BeckyLA

    Similar query to the first question – I did a switch to Scottish Power on Tuesday (before the increases were announced) does this mean I will get moved onto the old fixed deal or new price increases?

    • Michele Martinelli

      If you move to a fixed deal then those are the prices you’ll get for the duration of the contract.

  • Ian Vanstone

    I switched to e-on last week and I’m now waiting for confirmation from them. Will I get the rate they quoted at the time of my request of transfer ? Or would it be better to cancel this transfer and opt for First Utility?

  • Al

    We switched to First Utility fixed to May 2015. We’re now waiting for confirmation from them. It is really it is beneficial the fixed plan to 2017 for us as well as we will pay the same price per unite that we are already paying now British gas before its rise.

    • Michele Martinelli

      It really depends on your circumstances – a fixed price plan means you avoid price rises for its duration, so if you fix till 2017 you could be avoiding quite a few and it could end up saving you a fair amount of money.
      You can find more information here: http://www.uswitch.com/gas-electricity/guides/fixed-price-energy/

  • BeckyLA

    Thanks Lauren, the offer I chose to switch to was the Fixed until Mar 2015 one. I have since received my paperwork and confirmation from SP and it looks like I have switched and moved onto a deal, before the price increase so all good news.

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