Scottish Power customers to be hit by 7.8% price hike
1 million households to be affected by the 7.8% increase
Big 6 energy giant ScottishPower has today publicised that it is to increase prices on its standard variable tariff for the first time in 3 years. This rise, which takes effect from from 31st March 2017, has been blamed on growing cost of wholesale energy as well as paying for government schemes such as the rollout of smart meters.
Approximately 1million households are to be affected by the 10.8% increase on electricity and 4.7% on gas. Two out of three households who are currently on a fixed plan will be temporarily unaffected, but will face the burden of higher energy costs when these tariffs expire.
Scottish Power is the third supplier of the big 6 to announce a hike in prices, following EDF and npower. Other big 6 suppliers, E.ON, SSE and British Gas have all yet to announceprice rises, but it is expected that they will follow suit.
UK Retail Director of Scottish Power, Colin McNeill has said: “This increase will apply to one in three of our customers, and we continue to work hard to move even more customers to our fixed price deals. We will be writing to all those affected, outlining the changes and encouraging more loyal customers to move to a deal that best suits them.
“This price change follows months of cost increases that have already led to significant rises in fixed price products that now unfortunately have to be reflected in standard prices.”
In response to Scottish Power’s price hike, Mark Todd, co-founder, energyhelpline has commented:
“It is a dark day for energy customers as yet another supplier announces a big price rise. Scottish Power is the latest domino to fall, following EDF and Npower, in the price rise chain reaction.”
“Scottish Power is increasing its standard energy prices by an average of 7.8%, adding £84 to a typical yearly bill, taking its cost to an eye watering £1,165. By switching, an average Scottish Power standard customer can get a tariff today costing just £834 a year, saving them £331”.
“These price hikes are a massive blow for consumers, and sends the cost of loyalty higher and higher. Standard energy tariffs are a rip off and best avoided; unless you actually like overpaying for things!”
“Scottish Power is jumping on the price rise bandwagon prioritising profits over customers. This is no surprise as it is their job as a private company to make money supplying energy. Rises in wholesale prices, green electricity and smart metres are blamed and Scottish Power is unlikely to be the last to do this. E.on and SSE may also announce prices hikes of 5-10% this month.”
“Unless customers act to protect themselves, they will quickly become the losers in the Big Six’s game of “Who can charge the most?”