Scottish Power has become the third of the Big Six energy Anglo-Scottish suppliers to cut its household gas prices in the wake of a fall in wholesale costs, raising pressure on three other rivals to follow suit.
Scottish Power is to cut its standard domestic gas prices by 4.8%* from 20 February. The Glasgow-based utility also announced a new fixed-price tariff which it claims is one of the most competitive in the market place, with an average dual fuel bill value of £930.
However politicians from all parties and consumer groups remain concerned that the price-reduction still lags an average cut of 25% in wholesale gas costs since last year. In response, Scottish Power issued the chart (above) to show the break-down of typical costs for every £100 spent by a gas customer.
Neil Clitheroe, Chief Executive of Scottish Power Retail and Generation, said: “We are pleased to be able to pass on this price reduction to our customers, which will see the average annual gas bill on our standard tariff reduce by £33.
“This decision has been made to benefit our customers and keep our prices competitive. We will continue to keep our prices under review. Our pricing reflects all of the costs that contribute to a customer’s bill.
“The wholesale price of energy accounts for half of a customer’s gas bill, but non-energy costs such as transmission and distribution networks and environmental and social obligations remain unaffected by any wholesale energy price movements.”