ScottishPower’s winter price rise to be reduced by 3.3%

The energy supplier is set to announce that cuts to green levies will remove around £40 from the average consumer on a dual fuel, variable tariff

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ScottishPower is expected to reduce bills by 3.3%

According to the Telegraph, ScottishPower will announce that it will be reducing bills by close to 3.3% due to the government implemented cuts to green levies. Customers on fixed price tariffs will reportedly not see their bills reduced by this amount.

In addition, the energy supplier will pass on a £12 cut to all of its customers due to cuts to the Warm Home Discount scheme, which was previously funded through gas and electricity bills. The latter will now be sourced through public taxation.

Price cuts do not nullify winter price rises

The rapid succession of gas and electricity price rises and cuts has led to confusion from many consumers. As illustrated in the table below (ScottishPower’s announcement of cuts is estimated as it is not yet official), bills have risen substantially over the winter period, despite the cuts to green levies.

Average household energy bills

Supplier

Pre-hike bill

Post-hike bill

Hike effective

Bill after levy reduction

Cut effective

British Gas

£1,191

£1,306

23/11/2013

£1,265

01/01/2014

EDF Energy

£1,190

£1,237

03/01/2014

£1,237

N/A

E.ON

£1,226

£1,240

18/01/2014

£1,240

N/A

npower

£1,220

£1,332

01/12/2013

 £1,294*

TBC 2014

ScottishPower

£1,230

£1,325

06/12/2013

 £1,287*

TBC 2014

SSE

£1,211

£1,304

15/11/2013

 £1,266*

March 2014

Average

£1,212

£1,291

£1,265

Source: uSwitch.com

Based on a user consuming 3,200 kWh of electricity and 13,500 kWh of gas on a standard dual fuel plan, paying quarterly by cash and cheque, with bills averaged across all regions. *Based on DECC’s calculation that reductions will be worth £38 on average plus an additional £12 rebate being passed directly to consumers in Autumn 2014.

Some suppliers yet to announce cuts

Once ScottishPower announces a date for implementing the cuts, npower will be the sole member of the big six energy companies to have yet to commit to reducing prices.

British Gas implemented its reduction on the 1 January, which saw dual fuel customers pay an average of £41 less on their energy bills. This equates to a 3.2% cut to the supplier’s winter price rise of 9.2%. SSE has said cuts will take place in spring 2014.

EDF Energy and E.ON anticipated the cuts when implementing their winter price rises and as a result will not be making changes.

Read more

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Join the conversation

  • billcalc

    If the government is paying for the reduction in gas and electric prices then why can Scottish power not give this to fixed term customers, as a fixed term customer I will now start looking for a better rate, if that’s the best they can do they will join my Black List together with N power.

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