Gas cut by an average of 7.5%, electricity cut by an average of 3%
Customers will see an annual average saving of £54
ScottishPower today announced reductions in its gas and electricity prices effective from 31st March 2009. Prices for gas customers will drop by an average of 7.5% and electricity bills by an average of 3%1.
Willie MacDiarmid, ScottishPower’s, Director of Energy Retail, said: “We protected our customers by being the last to increase tariffs towards the end of 2008 and, following today’s announcement, ScottishPower is one of only two suppliers to implement cuts for both gas and electricity customers this year.
“The past year has seen unprecedented volatility in the wholesale energy market and the future outlook remains challenging.
“Although wholesale prices have fallen recently, the market remains volatile. Currently forward wholesale prices for Gas are 46% higher than in February 2007, while electricity costs have increased by 40% over the same period2. Against this backdrop we are working hard to protect our customers from this volatility and ensure that we offer the best possible value and service over the longer term.”
From 31st March 2009, an average ScottishPower dual fuel customer paying monthly by Direct Debit will see their bill drop to £11563 per year, a reduction of £543. Even after recent reductions this is cheaper than an average annual dual fuel from British Gas and maintains ScottishPower’s record of being cheaper than British Gas for almost all of the past 7 years.4
ScottishPower also offers support for its most vulnerable customers through the recently announced Fresh Start social tariff scheme. Under this package customers over 60 and in receipt of qualifying state benefits can save more than £200 per year.5 In addition, ScottishPower is the only UK supplier to set standard Prepayment prices significantly below standard Cash rates for both gas and electricity.
Media information: Simon McMillan 0141 566 4875 / 07753 622 257
Notes to editors:
1: Average cuts are based on an average across payment methods and supply areas with an annual usage of 20,500kWh of mains gas and 3,300 kWh of Standard Domestic Rate electricity.
2: Source: ICIS Heren
3. Average bill is based on a usage of 20,500 kWh of mains gas and 3,300 kWh of Standard Domestic Rate electricity annually, across Britain, paying monthly by Direct Debit.
4: Savings comparison based on an average domestic Dual Fuel customer across Britain paying monthly by Direct Debit who uses 20,500kWh of mains gas and 3,300kWh of Standard Domestic Rate electricity annually. Excludes IGT domestic gas customers. Comparison correct as at 27th February 2009.
5: In December 2008, ScottishPower announced that the company would spend £10M helping 230,000 of its most vulnerable customers before 31st March 2009. This announcement also launched the ScottishPower Social Tariff 'Fresh Start'. Under this package customers are guaranteed always to remain on the lowest SP tariff in their region - which today could mean savings of more than £200 per year. The offer is open to existing ScottishPower customers who are aged 60 or above and in receipt of a social welfare benefit. Those customers who sign up before 31st March 2009 will have their prices backdated to the lower Fresh Start rates from 1st January 2009 to ensure they receive maximum benefit this winter.
* Annual saving of more than £200 is based on an average of ScottishPower's Gas and Electricity Offer offline customers across Britain with annual mains gas usage of 20,500kWh and annual Standard Rate electricity usage of 3,300kWh, who pay quarterly (excluding prompt payer discounts) and switch to ScottishPower's Fresh Start Offer. Prices correct as at 27th February 2009.
6: ScottishPower supplies 5.2 million services to homes in Britain.