Scottish Power to Raise Price of Domestic Gas by 19% and Electricity by 10%

June 8th, 2011

Via: Guardian:

Scottish Power is to raise the price of domestic gas and electricity bills by 19% and 10% respectively from August 2011, blaming the increases on a rise in wholesale energy costs and volatility in global energy markets.

The rise, which will affect 2.4m households and add £175 a year – or 48p a day – to the average dual fuel customer’s bill, was described as a “body blow for consumers” by Consumer Focus.

Scottish Power, which last increased prices in November 2010 – raising gas bills by 2% and electricity by 8.9% – said it will notify customers from 11 June, giving them at least 30 days’ notice before the price change is due to take effect.

Raymond Jack, Scottish Power’s UK retail director, said: “Wholesale prices for gas and electricity have increased significantly since the end of last year, and continuing unrest in global energy markets means future prices are volatile. We understand times are difficult for many people, and we have done what we can to absorb these additional costs for as long as possible to minimise the impact on our customers.

“The rising burden of non-energy costs faced by Britain’s energy suppliers – including the cost of meeting government environmental and social programmes and the cost of distributing electricity on the national grid – has also placed further upward pressure on energy bills.”

But the energy provider was blasted by consumer groups who believe its move could prompt a wave of further price rises from the other “big five” energy providers just months after last winter’s price rises.

Audrey Gallacher, head of energy at Consumer Focus, said: “This huge increase will be a body blow for consumers, and we fear other firms will follow Scottish Power’s lead. Companies have been softening customers up for price rises for months, but customers will shocked at the scale of this rise.

“We know suppliers like the comfort of the pack and that price rises come in waves. Every household in the country will now be bracing themselves for impact.”

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