ScottishPower cuts gas prices by 5%

The move, which will affect around 1.4 million of its dual fuel and gas-only customers, will take effect from the 27th February 2012.

Neil Clitheroe, ScottishPower’s CEO of Energy Retail and Generation, said the price decrease was part of its continuing pledge to review tariff costs. 

“Our customers want competitive prices from a responsible supplier," he said in a statement. 

"We understand that household budgets are tight in these tough economic times and with this in mind, we are pleased to be able to pass on lower prices and help our customers when we can.

“In October, we pledged not to increase standard prices for gas and electricity over the winter months, extending until at least 1st April 2012.  

"Today’s reduction is being made as part of our commitment to continually review our tariffs.

EDF, British Gas, SSE, npower and E.ON all cut their energy costs by between 4.5% and 6% on either gas or electricity. 

Falling wholesale gas costs have been widely identified as the cause behind the price cuts, which have come as a welcome sign following a spate of price rises in the industry, which saw energy costs rise by an average of £224.

However, Mr Clitheroe warned the prices decreases may only be temporary: 

“Having said that, we have already secured the majority of our energy requirements for this winter.

"It is important that we do this to ensure we have sufficient supplies when our customers need them and to protect customers from the impact of volatile movements in the wholesale energy market.

“Although there has been a short-term fluctuation in the wholesale gas market that has allowed us to pass on today’s reductions, the global demand for energy is increasing faster than its supply. 

"This will inevitably lead to higher energy costs in the long-term.

“Wholesale charges represent around 55% of the typical gas bill.

"The remainder of the bill is primarily made up of fixed components such as network charges, environmental, social and regulatory costs.

“To get the most from our new lower prices, we would, as always, encourage all of our customers to contact us to make sure they are on the best tariff for their circumstances."