BIG six energy firm ScottishPower is to impose an eight per cent bills hike within weeks, it has been announced.
Anti-poverty campaigners said the change would be “a blow” for those “already struggling” to meet household heating and lighting costs.
However, the Glasgow-based firm said only two-thirds of customers would be affected, with the remaining 1.1 million exposed to the change, which was blamed on rises in wholesale energy markets and non-power schemes including de-carbonisation work and the roll out of smart meters.
Retail director Colin McNeill said: “This increase will apply to one in three of our customers, and we continue to work hard to move more customers to fixed price deals.
“We will be writing to all those affected, outlining the changes and encouraging 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.”
From March 31, standard tariff electricity rates will go up by 10.8 per cent, with gas prices up 4.7 per cent. Typical dual fuel customers will pay an extra £86 a year, up 7.8 per cent.
The announcement came on the same day competitor British Gas said its price freeze for standard energy tariff customers will be extended until August.
It also follows an outcry when Npower revealed it is also to raise charges and advice from regulator Ofgem to providers about ways to reduce extra charges for the public.
Fraser Stewart of the Consumer Future Unit at Citizens Advice Scotland said: “Coming just a week after Npower announced a similar price rise, this news will come as an unwelcome blow for ScottishPower customers, many of whom are already struggling to pay their fuel bills.
“Energy suppliers are blaming these price rises on increases in wholesale energy prices and the cost of delivering government policies. However, only three weeks ago Ofgem told suppliers they should absorb the costs of wholesale price rises by buying energy in advance.
“We would urge all energy suppliers to be upfront and tell customers what is causing their bills to go up by such significant amounts. Consumers deserve to know exactly what they are paying for, so they are able to compare different suppliers and switch supplier if they want to.
“Anyone who is struggling with their fuel bills can get advice at their local Citizens Advice Bureau, or through our advice website.”
British Gas owner Centrica said its freeze was possible “despite increases in external costs”. Boss Mark Hodges said: “In December we promised to take action to improve how the energy market works for customers.
“We aim to do even more in the coming months to meet our customers’ needs, earn their business, and reward their loyalty.”
Npower’s 9.8 per cent hike will see its dual fuel customers pay an extra £109 a year, while rival EDF announced its rise in December.
Further rises are now expected across the market.
Why are you making commenting on The National only available to subscribers?
We know there are thousands of National readers who want to debate, argue and go back and forth in the comments section of our stories. We’ve got the most informed readers in Scotland, asking each other the big questions about the future of our country.
Unfortunately, though, these important debates are being spoiled by a vocal minority of trolls who aren’t really interested in the issues, try to derail the conversations, register under fake names, and post vile abuse.
So that’s why we’ve decided to make the ability to comment only available to our paying subscribers. That way, all the trolls who post abuse on our website will have to pay if they want to join the debate – and risk a permanent ban from the account that they subscribe with.
The conversation will go back to what it should be about – people who care passionately about the issues, but disagree constructively on what we should do about them. Let’s get that debate started!
Callum Baird, Editor of The National
Comments: Our rules
We want our comments to be a lively and valuable part of our community - a place where readers can debate and engage with the most important local issues. The ability to comment on our stories is a privilege, not a right, however, and that privilege may be withdrawn if it is abused or misused.
Please report any comments that break our rules.
Read the rules here