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 will take effect 8 October 2018, and is 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).
The price increase affects customers on ScottishPower's standard rate plan, adding about £46 on average to these households' bills — and making ScottishPower's standard rate energy plan £404 more expensive than the cheapest deal on the market at the time of the announcement.
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Commenting on the news, Emma Bush, uSwitch.com energy expert, said of the price rise:
“Households in Britain have been lambasted by price rises in 2018, so it’s great to see more energy customers than ever switching supplier and protecting themselves by finding cheaper deals.
“It doesn’t seem like five minutes have passed since ScottishPower’s last price hike kicked in on 1st June. Wholesale and policy costs have increased dramatically this year, so with wider Government intervention around the corner in the form of a price cap, it’s vital that consumers don’t mistakenly think that a cap will protect them. As Ofgem’s two increases to the prepayment cap have shown, prices can still rise when a cap is in place.
“Customers don’t need to take this news on the chin. Instead of being sitting ducks on standard variable tariffs, they can show their supplier who’s boss by switching away and saving up to £482.”
Previous price rises from ScottishPower in 2018
In April of 2018, ScottishPower announced a rise of 5.5%.
Claire Osborne, energy expert at uSwitch, said of the price rise (announced during a heat wave and after three other big six suppliers had increased prices):
"It might be hot right now, but this price rise will affect households whatever the weather. Don't be distracted by the heat-wave – this will cost customers at least £60 million this year alone.
"Energy companies are now falling over each other to raise the price of their worst value deals. It's a fact of life that gas and electricity costs rise as well as fall, but larger suppliers who buy several years ahead should be able to factor in wholesale price fluctuations and protect their customers from sudden price rises.
"The threat of an impending price cap seems to be having a negative impact before it's even been introduced. Suppliers are rushing to push up prices for millions of customers and banking on them not switching once the cap is in place.
"But customers can strike back and save a cool £447 by changing supplier - then spend it on fun in the sun rather than poor-value energy deals. It's only when energy companies feel the threat of competition and risk losing customers that they'll be forced to offer them genuinely good deals."
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 rise will have impacted about a third of ScottishPower's customers. If you do nothing, from the end of May 2018, you will see your rates increase. If your fixed rate comes to an end on or after 1 June 2018 at ScottishPower, then you will be moved to this increased-rate standard plan.
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 raise their prices?
ScottishPower said the move to raise prices came about as a result of price rises in the energy wholesale markets, as well as 'compulsory non-energy costs' including meter upgrade work.
To learn more about the reasons why energy suppliers might have raised their prices last year, see our guide to Gas and electricity price changes 2017.
What happened to energy prices in 2017?
Aside from ScottishPower, the rest of the 'big six' energy suppliers all raised their prices in 2017.
- SSE's electricity rates increased in March 2017 by 14.9%.
- Npower raised its standard tariff electricity prices in March 2017 by 15% and gas prices by 4.8%.
- EDF Energy's dual fuel prices rose by 1.2% in March 2017 and again in June by 7.2% on standard variable rate tariffs, however they cut gas prices by 5.2% at the start of 2017
- E.On increased electricity prices in April 2017 by an average of 13.8%, and gas prices by 3.8%
- British Gas raised electricity prices by 12.5% in September 2017 after stating they would freeze prices until August 2017
Will ScottishPower raise prices in 2019 too?
There has been no news of ScottishPower price rises in 2019, but there are no guarantees it won't happen again.
You can stay up to date with the latest news from the energy market.
Usually, when one major energy supplier raises their prices the rest tend to follow suit.
That might explain why most of the energy price rises in 2018 happened in April and May after British Gas announced a price rise of 5.5%
The energy market regulator, Ofgem has advocated for consumer empowerment and encouraged customers to switch their deal to get a better price for their gas and electricity.