Energy costs rising
ScottishPower hikes prices for second time this year
Energy prices are rising across the industry
ScottishPower is increasing prices for the second time this year with the cost of a standard variable dual fuel tariff rising by an average of 3.7% from 8 October.
The company says less than a third of homes it supplies – about 900,000 – will be affected.
ScottishPower has blamed the price change on increases in wholesale energy costs which led to Ofgem announcing a 4.4% increase to the prepayment safeguard tariff cap earlier this month.
In April, it said it would raise its gas and electricity prices by 5.5% for a third of its customers from 1 June.
Among the major suppliers the company has more customers moving from standard tariffs to fixed price deals. The proportion on standard variable tariffs has continued to reduce during 2018, as ScottishPower no longer moves customers onto standard variable prices at the end of a fixed price deal.
Neil Clitheroe, CEO retail said: “We have seen significant increases in wholesale energy costs since April, and like others in the industry, this means that we need to increase our prices.
“More than two-thirds of our customers are on fixed price products or other tariffs not impacted by this price change.
“Those customers affected by the price change will be contacted and offered the opportunity to move to a fixed price tariff alternative and avoid this increase.”
Scottish Gas recently announced a 3.8% increase in its standard variable tariff from 1 October. Parent company Centrica said the move would affect 3.5 million customers.
E.On, SSE, Npower, EDF and Bulb have also recently hiked energy prices, blaming wholesale energy costs for the increases.