Final energy providers increase gas and electricity rates
Friday, 29 Aug 2008 17:54
Second wave of gas and electricity price hikes
ScottishPower and npower both increased gas and electricity prices today.
Scottish Power is increasing gas prices by 34 per cent and electricity prices by nine per cent – meaning the average dual fuel bill will rise by 25 per cent.
Npower has raised prices by 26% for gas and 14% for electricity.
The energy price hikes follow similar decisions from the other four major energy providers EDF, British Gas, SSE and E.ON – meaning all major energy firms have now increased their rates twice this year.
The price increases have be blamed on rising wholesale energy prices.
Willie MacDiarmid, ScottishPower director of energy retail, said: "These are difficult times and we understand the financial impact this announcement will have on our customers. Although we’re one of the last companies to announce increases we’re sorry we couldn’t hold on any longer.
"The continuing volatility in the global market for gas is directly contributing to increasing UK’s domestic energy prices and ScottishPower is not immune to these rises."
Ann Robinson, director of consumer policy at uSwitch.com, explained consumers have to learn to change the way they use and buy gas and electricity.
“Consumers have got to adjust and there are two key steps to this; making sure we pay the lowest possible price for our energy and learning to use less of it," she said
"Consumers should look to pay by direct debit and move to an online plan where possible to get the best available prices. Those who have switched recently can afford to sit tight now to see what the final price rise brings.
"But those who have never shopped around before are already paying way above the odds for their energy – they should switch today so that they can start to make immediate savings."
Average annual household energy bill in 2008
| | Standard Plan Jan 1st 2008 | Standard Plan July 1st 2008 | Standard Plan after 2nd price rise | Total increase since Jan 1st 2008 |
|---|
| EDF Energy | £907 | £1,007 | £1,211 | £304 or 34% |
| Scottish & Southern Energy | £875 | £1,006 | £1,259 | £384 or 44% |
| npower | £908 | £1,056 | £1,278 | £370 or 41% |
| E.On | £913 | £1,063 | £1,297 | £384 or 42% |
| British Gas | £912 | £1,055 | £1,328 | £416 or 46% |
| ScottishPower | £959 | £1,100 | £1,375 | £416 or 43% |
| Average | £912 | £1,048 | £1,307 | £395 or 43% |
Source: uSwitch.com Bill sizes based on a medium user profile (20,500kWh of gas 3,300kWh of electricity per annum). Bill sizes averaged across all regions. Customer taking a standard Dual Fuel plan, paying on receipt of bill.