Scottish Power cuts bills by 4.8% - Gas and electricity - News - Moneyfacts

News

Moneyfacts.co.uk News brings you the latest financial & economic news & reviews of the best products in the UK by our team of money experts.

Scottish Power cuts bills by 4.8%

Scottish Power cuts bills by 4.8%

Category: Gas and electricity

Updated: 20/01/2015
First Published: 20/01/2015

MONEYFACTS ARCHIVE
This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.

Scottish Power has become the third of the Big Six to announce a price cut in the past week, following the dramatic reduction in the wholesale cost of gas in recent months. The supplier is reducing its standard gas prices by an average of 4.8%, resulting in a typical saving of £33 per year, with around 1.1 million customers set to benefit.

The price cut will come into force on 20 February, and will only apply to customers on standard tariffs. However, the supplier also announced the launch of a new fixed price tariff, touted as being one of the most competitive on the market, which could see the average dual fuel bill cost just £930 per year.

The move follows similar reductions from E.ON and British Gas, who cut prices by 3.5% and 5% respectively. However, it's also faced similar criticism, namely that none of the suppliers have passed on the significant savings they've witnessed themselves – the cost of wholesale gas has fallen by around 20% in the last 12 months, making these price cuts seem small by comparison.

There's also criticism that Scottish Power's price cut, much like British Gas's, will only come into force at the end of February, meaning customers will still be paying high prices during the season of peak energy usage.

That's why customers are being urged to be proactive and compare the options themselves. Figures from energyhelpline.com show that the typical dual fuel customer could save as much as £405 by switching, particularly if they're on standard tariffs and make the move to a fixed rate, far more than if you simply accepted your current supplier's price cut.

The pressure's now on the remaining suppliers to make their own price cuts, but when you could save so much more cash by switching yourself, why wait?

Mark Todd, director of energyhelpline, commented: "For customers the best thing to do is switch. The cheapest UK energy tariff costs £918, over £200 less than the cheapest standard price. Being on a standard energy deal really does not pay even after these cuts; the smart money is on switching."

Disclaimer: Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time.

Related Articles

Common energy mistakes that cost you £££

The heating system is probably working overtime at present, but what if you could cut your bills without battling hypothermia? The key is being energy efficient, yet households could be wasting hundreds of pounds by making costly energy mistakes.

4.8m people switched energy supplier last year

We’re often told of the amount we could save by switching energy supplier, and happily, the message seems to be getting through, with the number of consumers switching providers having reached record levels last year.

EDF cuts gas prices, but hikes electricity

EDF Energy has announced that it’s cutting gas prices for customers on its standard variable rate tariffs, but unfortunately, electricity customers could lose out, as they’ll see a rate increase from March next year.
 
Close