Scottishpower and Scottish Gas latest to hike bills
SCOTTISH Gas and Glasgow-based Scottishpower have become the latest energy suppliers to announce they are increasing their standard variable tariffs after Ofgem upped the price cap.
British Gas, known as Scottish Gas north of the Border, is raising its prices by 10.5 per cent, which will see the average dual fuel bill increase by £119.12 a year – costing the average SVT customer £1,254 a year. Prepayment meter customers will also face a £107 (9%) price rise.
Scottishpower is also raising its prices by 10 per cent – £117 a year – meaning its standard plan will also cost on average £1,254. The moves come after the energy price cap set up government regulatory Ofgem was labelled a “con” after it emerged Scots face bill hikes of up to £184 a year while the number of cheap deals has been slashed.
The latest price rise will come into effect on April 1 and will hit nearly five million UK households – 3.9 million British Gas customers and 900,000 Scottishpower customers.
Eon, EDF and Npower had already raised their standard variable tariff by about £117 to an average of £1,254 in April – the maximum they are allowed to charge under the cap.
Perth-based SSE, the last of the Big Six, has yet to confirm if it will follow suit. Theresa May insisted in the Commons last week that the cap “provided protection to 11m households and energy suppliers will no longer be able to rip off customers on poor value tariffs”.
British Gas declined to comment specifically on its latest price rise but referred to a statement in January when it said it intended to adjust its standard variable tariff and default tariff pricing to broadly reflect Ofgem’s cap.
Ofgem announced on February 7 that it would increase the price cap for default and standard variable gas and electricity tariffs by £117 to £1,254 a year from April 1 due to hikes in wholesale costs.
The watchdog said previously that those affected would still pay a “fair price” for their energy as the increase reflects a genuine rise in underlying wholesale costs, rather than provider profiteering.
Richard Neudegg, head of regulation at uswitch.com, said: “British Gas’ confirmation that it is hiking bills up to the maximum permitted by the price cap should surprise no one, but that doesn’t mean their customers should fall for the price cap trap.
“Eight million households already know they’ll be part of possibly the largest energy price rise ever to happen on a single day when the new cap kicks in on 1 April. They can save hundreds of pounds by switching away.”