ScottishPower today announced higher prices as a result of an 80% increase in wholesale energy costs over the last 12 months.

From 10 July 2006, electricity prices will rise by an average 10%, while gas prices will increase by an average 17%. Even after the price increases, ScottishPower's standard Gas & Electricity Offer will remain cheaper than British Gas for the fourth year running.

Willie MacDiarmid, ScottishPower's Director of Energy Retail, said: "As we indicated last month, wholesale energy costs continue to rise and are now a record 80% higher than this time last year.

"We have absorbed most of the impact and our last price increase announced in February was one of the smallest in the sector.  However we now need to pass on some of these increased wholesale energy costs".

ScottishPower has also launched a new Capped Price Offer to shield customers from further increases until October 2008. Around one million of ScottishPower's 5.2 million customers will avoid the increase as they are already on a Capped Price Offer and switching now to the new offer will protect customers from any further rises for more than two years. Similarly, people paying by cheque can offset most of the increase by switching to Direct Debit, saving on average £79 a year.

 

Media Enquiries:

Colin McSeveny    Director, Media Relations                  0141 636 4515

Simon McMillan    Group Media Relations Manager        0141 566 4875

Anthony Cardew    Cardew Group                                 0207 930 0777 or 07770 720389

Rupert Pitman        Cardew Group                                 0207 930 0777 or 07976 249289

 

Note to Editors

To help its most vulnerable customers, ScottishPower also offers a package of measures including:

In the former ScottishPower and Manweb homes areas customers who currently pay via prepayment metering for their electricity will see an increase of only three-quarters of that of quarterly credit customers.

 further £1million has been invested in our Energy People Trust, trebling the funding to £3million since its inception 6 months ago. It has already awarded almost £1m to 33 projects, helping at least 28,000 households across the UK.

Support for Priority Service Register customers who have prepayment meters via a further winter payment of £50 that will be credited to their accounts.

During the last 12 months ScottishPower has insulated more than 130,000 homes and supplier over 27,000 condensing boilers and over 1.8m energy efficient light bulbs. Over the next two years ScottishPower plans to invest a further £100m in energy efficiency measures.