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Updated – ScottishPower announce £54 reduction for dual fuel customers

ScottishPower have announced a £54 reduction for dual fuel customers

ScottishPower have announced a £54 reduction for dual fuel customers

ScottishPower’s latest cuts will see bills drop by roughly 3.3% (about £42) for households on a dual fuel standard tariff. The reduction will be implemented on the 31 January.

An additional £12 credit will be added for all customers in autumn due to a government rebate.

‘We will be passing these cost reductions on to customers this month’

ScottishPower’s CEO of Energy Retail and Generation, Neil Clitheroe, said: “Following the Government’s recent announcement on reducing the impact of green and social levies on consumer energy bills, we will be passing these cost reductions on to customers this month.

“We are pleased that the Government has taken sensible measures to curb these rising costs.”

Some ‘customers are still left in the dark’

Tom Lyon, energy expert at uSwitch, said: “While it’s great news that ScottishPower has finally told its customers about the reductions they’ll be enjoying on their energy bills, SSE and npower’s customers are still left in the dark and struggling with sky-high energy costs. We strongly implore suppliers to not only offer relief soon, but also to backdate any reductions so that consumers can feel the benefit during the coldest months of the year.

“While suppliers are delaying, consumers shouldn’t. There is currently over £300 difference between the cheapest and the most expensive tariff on the market meaning that consumers can give themselves an even more substantial price cut by switching to a cheaper deal.”

Average household energy bills:


Pre-hike bill

Post-hike bill

Hike effective

Bill after levy reduction

Cut effective

British Gas






EDF Energy

















TBC 2014












March 2014






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

Fixed price vs. variable

Those who signed up to fixed price tariffs will be able to take advantage of the cuts when their plans come to an end. According to ScottishPower, 97% of customers on a fixed tariff are already benefitting from a cheaper deal than they would otherwise have if they were on a variable plan, regardless of the new reductions.

The 3% of fixed tariff customers whose bills are not lower than those on variable plans following the cut, will have their bills reduced in line with the new standard plan rates on 31 January.

Price rises in 2014 ‘depend on [changes in] wholesale energy prices or other costs’

Speaking about the possibility of gas and electricity price rises this year, Clitheroe said: “We will try to avoid any further price rises in 2014 but this will depend on whether there are increases in wholesale energy prices or other costs outside of our control.”

ScottishPower is the fifth of the big six energy providers to announce it is incorporating government cuts into customer bills. EDF Energy and E.ON took the reductions into account when calculating their original winter price rises, British Gas implemented changes on the 1 January and SSE has said it will cut costs in spring. npower has yet to make an announcement.

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