ScottishPower Hikes Energy Prices By Up To 9%

Written By Unknown on Kamis, 24 Oktober 2013 | 22.11

Energy giant ScottishPower has raised its prices by 8.5% for gas and 9% for electricity from December 6.

It is expected that the rises will add another £113 to the typical annual dual fuel bill.

The Spanish-owned company said more than one third of its 3.2 million residential customers them will not be affected by the price rises as they are on fixed or capped tariff deals.

Parent firm Iberdrola had warned in third-quarter results on Wednesday that it had "no option" but to increase tariffs in the UK after claiming ScottishPower had been hit by the Government's energy efficiency and environmental measures.

Neil Clitheroe, ScottishPower's chief executive of energy retail and generation, said: "The cost of purchasing and delivering energy to homes across Britain has risen significantly this year.

"With an increase in costs for delivering compulsory schemes to reduce carbon emissions and improving energy efficiency in homes, we unfortunately have no other option than to pass these on by increasing our prices for customers."

ScottishPower is the latest power supplier to announce price increases, following npower (up 11%), British Gas (up 9.2%) and SSE (up 8.2%).

The rises have generated anger from the public and politicians, as families' net earnings have stayed flat and inflation has stayed low.

Energy Another 2.2 million households face higher energy bills

The hikes have increasingly become a political issue, with Labour saying they will freeze prices for a period if they get into power.

The Conservatives have said they expect prices to come down as they increase the amount of competition in the market and review taxes.

On Sunday, the Archbishop of Canterbury waded into the row describing the latest wave of rises as "inexplicable".

Much of the argument has been over how much of the rise is down to so-called green taxes.

These have been levied on fuel bills to help pay for more clean energy schemes with fewer CO2 emissions and more home insulation.

ScottishPower said it has seen a 16% increase in the cost of environmental and social schemes.

Shadow business secretary Chuka Umunna told Sky News: "This simply strengthens the case for ... taking action to protect consumer and protect businesses who have been whacked with these energy price hikes for some time now.

Shadow energy and climate change secretary Caroline Flint added: "This latest price rise is a slap in the face for hard-pressed consumers.

"While David Cameron dithers people are being left out of pocket because of the Government's failure to stand up to the energy companies."

But Energy and Climate Change Secretary Edward Davey said: "With 15 independent energy suppliers to choose from outside the Big Six, it's surprising that these companies think they can keep getting away with bill hikes of this magnitude.

"As more and more people shop around for the competitive deals on the market, some of which are offered by the independents, companies like Scottish Power can no longer put their bills up in this way with no consequences.

"The Government is looking at how to get people's energy bills as low as possible to help hard-pressed households.

"We've already increased competition, brought new players in to the market to offer consumers real choice, and the most vulnerable people are getting direct help with their bills this winter. We'll continue this work to make sure consumers are getting a good deal."


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