ScottishPower announced a price drop in August 2019 in reaction to Ofgem's reduced price cap.
This price reduction took effect on 1 October 2019, and equates to an average £76 bill decrease for customers on ScottishPower's standard rate plan.
The price drop follows a previous price increase of around £117 earlier in the year, also in reaction of Ofgem's fluctuating price cap.
ScottishPower was the fifth of the big six energy suppliers to announce a price rise in February 2019 after Ofgem announced an increase to the energy price cap rate.
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Commenting on the news, Richard Neudegg, Head of Regulation at uSwitch, said:
“It's now been confirmed that over £1 billion a year will be slapped on energy bills from 1 April. But households don't have to fork out extra just because a spreadsheet says so.
"There are nearly 200 energy tariffs which are currently cheaper than the new cap will cost. Consumers can grab savings of over £300 by switching now."
What should I do about the price change?
You are only affected by the price announcement if you are on ScottishPower's standard plan. This price drop will have impacted about a third of ScottishPower's customers.
Standard plans are usually suppliers' most expensive tariffs. If you are on your suppliers' standard tariff, then you should be looking to save on your energy bill, and run a energy comparison against all plans and suppliers to find the best deal for you.
Why did ScottishPower drop its prices?
ScottishPower was the last of the big six energy providers to react to Ofgem's price cap adjustment in August 2019.
The supplier reduced the cost of its standard variable tariff to £1,178 to fall under the new price cap rate, effective 1 October 2019.
Previous price rises from ScottishPower
In February 2019, ScottishPower announced a price rise just days after Ofgem revealed that it would be increasing the rate of the energy price cap in April 2019.
The supplier followed three other big six suppliers in adjusting the average cost of its standard tariff to match the new cap level of £1,254.
Prior to 2019, ScottishPower last announced a price rise of 3.7% for around 900,000 dual fuel standard rate customers on 24 August 2018.
This price hike took effect 8 October 2018, and was the second price rise from the big six supplier in 2018 — in April, ScottishPower announced a price rise of 5.5% (this rise took effect 1 June 2018).
What happened to energy prices in 2018?
Aside from ScottishPower, the rest of the big six energy suppliers all raised their prices in 2018.
- SSE's electricity rates increased in July 2018 by 6.7% The supplier also removed paperless billing discounts, adding another £6 per fuel to bills.
- npower raised its standard dual fuel prices in June 2018 by 5.3%.
- EDF Energy raised energy prices twice in 2018 — 1.4% in June and 6% in August.
- E.ON also announced two price rises in 2018. It removed discounts for some customers in April and in August it hiked prices by 4.8%.
- British Gas raised its prices by a total of £104 in 2018, in April and August.
You can read more about price changes across the major energy providers in our guide, Gas and electricity price changes 2019.
Will ScottishPower raise prices in 2019?
Ofgem's price cap is reviewed twice a year, with new rates effective in April and October each year.
Because ScottishPower has priced its standard variable tariff very close to the maximum price cap rate, customers are unlikely to see any price increases until the cap is next reviewed in February 2020.
You can stay up to date with the latest news on the energy market from uSwitch.