ScottishPower will increase its standard variable gas and electricity prices from 1 June 2018.
The big six supplier has stated that the increase is due to rises in wholesale energy costs, and compulsory non-energy costs.
Customers will see an average increase of 5.5%, that’s around £63 a year on an annual dual fuel bill; around one million customers on the supplier’s standard variable tariff (SVT) will be affected, costing consumers over £60million.
Is a price cap partly to blame?
Claire Osborne, energy expert at uSwitch, is concerned that the government’s proposed price cap could also be having a negative effect already:
“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.”
Other recent price rises
This price rise from ScottishPower comes just weeks after British Gas revealed they would be hiking up prices for millions of customers as SVT gas and electricity rates increase by 5.5% from 29 May.
EDF Energy followed suit with an increase to its electricity standing charge — this equates to an increase of 1.4% to its SVT dual fuel customers, effective from 7 June.
The danger is that more suppliers will now follow suit.
What can consumers do?
Customers can strike back against price rises and save up to £491 by changing supplier.
Switching to a fixed energy deal would protect you from any price rises throughout the duration of the deal — these are often some of the cheapest tariffs available too.
If you’re interested in customer experience as well as a getting a cheaper deal, then our customer ratings could help.