Scottish Power will be raising its standard tariff electricity prices by 10.8% from 31 March, while gas prices will increase by 4.7%. Its dual fuel prices will rise by 7.8%, or £86.
The price hike comes after another Big Sex member, EDF, announced in December that its standard electricity tariff for UK customers will increase by 8.4 per cent from March this year.
Scottish Power said that around 1.1 million, or a third of its customers, will be affected by its price hike.
Scottish Power’s UK retail director, Colin McNeill, 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.”
British Gas extending its price freeze
Shortly after Scottish Power made the announcement, British Gas stated that it will extend its price freeze for its standard tariff, through until August.
Mark Hodges, CEO, British Gas, said in a statement:
“Households have been bombarded with media speculation this week that British Gas was about to follow two other large energy suppliers in announcing a price rise. The predictions were startlingly wrong. In fact, what we’re announcing today is an extension of our price freeze for our standard tariff, right through until 1st August.”
“So why are we freezing the price, when an imminent and significant rise was so confidently predicted? To differentiate ourselves, retain our customers and win new ones. In a competitive market with over 50 suppliers, we are determined to give our customers great offers and services.”
However, Hannah Maundrell, editor in chief of financial advice website money.co.uk, said that the price freeze is simply “delaying the inevitable”.
“British Gas’s price freeze is lulling customers into a false of security when they’re simply delaying the inevitable,” she said.
“Freezing prices doesn’t help customers in the long run. The people it impacts are paying too much for their energy anyway because they’re on standard tariffs. If anything it’ll make them less likely to switch and save.”