Two-thirds of homes supplied by ScottishPower unaffected by this price change
Direct Debit customers will see an average Dual Fuel increase of 5.5%
Increase is due to rises in wholesale energy costs and compulsory non-energy costs
ScottishPower will increase its standard variable domestic gas and electricity prices from 1st June 2018. The majority of customers affected, who pay by Monthly Direct Debit, will see an average increase of 5.5%, or £63 on a typical annual dual fuel bill.
The price change follows rising wholesale energy costs and compulsory non-energy costs, such as delivering low-carbon electricity and upgrading meters. These are similar to the cost pressures that led to OFGEM announcing a 5.5% increase to the prepayment safeguard tariff cap in February.
This change will affect approximately one-third of homes supplied by ScottishPower (approximately 960,000). The other two-thirds of homes are on tariffs or payment methods unaffected by this price change. ScottishPower continues to lead the major suppliers in moving customers from standard tariffs, with 60% of its non-prepayment customers on fixed price deals. The proportion on standard variable tariffs will continue to reduce in 2018, as ScottishPower no longer moves customers onto standard variable prices at the end of a fixed-term product.
Neil Clitheroe, CEO Retail said: “Unfortunately our standard variable prices are having to go up. This reflects rising wholesale energy costs and compulsory non-energy costs. Two-thirds of our customers are unaffected. We will be contacting all customers affected by the price change to give them the opportunity to move to a fixed price tariff alternative and avoid this increase.”
- The Increases:- For the average domestic GB customer with Ofgem’s typical annual consumption of 3,100kWh electricity and 12,000kWh gas, the changes will be:
Average Annual Dual Fuel Bill (including VAT)
1st June 2018
Average annual Increase
- Prepayment safeguard tariff cap increase:- Ofgem adjusts the level of the prepayment safeguard tariff cap twice a year based on a pre-defined methodology set by the Competition and Markets Authority to reflect the estimated underlying costs of supplying energy. On 7th February, OFGEM announced that from 1st April, the level of the safeguard tariff cap would rise by approximately 5.5% (£57 a year) for a dual fuel customer with typical energy consumption. The increase in the safeguard tariff cap is mainly due to higher wholesale energy costs and higher costs associated with Government policy to support low carbon forms of electricity generation.
- Percentage of non-prepayment domestic ScottishPower customers on standard variable tariffs in comparison to other major suppliers
Proportion of non-prepayment domestic customer base on standard variable tariffs (%)
Source: OFGEM (January 2018)