07/06/2011
By Peter Cripss
Scottish Power has said it will increase gas bills by an average of 19 per cent and electricity bills by 10 per cent from August 1, in a blow for some 2.4 million customers.
Households on a dual fuel tariff paying monthly by direct debit will see their bills increase by an average of £175 a year.
The company last put its prices up in November, when gas prices rose 2 per cent and electricity bills by 8.9 per cent.
Lisa Greenfield, energy analyst at Confused.com says “We’ve seen the warning signs for quite some time and it’s no surprise the rises have begun. It’s disheartening news for Scottish Power customers, although the other suppliers are sure to follow soon. We could be seeing a repeat of the unprecedented rises of 2008 and we’d advise switching to a fixed or capped tariff quickly before the best deals are withdrawn”
Customers of the big six energy suppliers faced increases in their bills during the winter and a further round of price hikes is expected following Scottish Power’s latest move.
With wholesale costs predicted to rise in the coming months, energy customers look set to feel the squeeze.
Official estimates from the Bank of England predict that bills will jump by up to 15 per cent by the end of 2011. British Gas’ parent Centrica has also indicated it expects domestic bills to rise.
Scottish Power added that the rising cost of meeting Government's environmental and social programmes and of distributing electricity via the National Grid, had also contributed to the price rise.
Raymond Jack, Scottish Power's UK retail director, said: "Wholesale prices for gas and electricity have increased significantly since the end of last year and continuing unrest in global energy markets means future prices are volatile.
"We understand times are difficult for many people, and we have done what we can to absorb these additional costs for as long as possible to minimise the impact on our customers."
