Scottish Power announces its second price hike this year
Scottish Power is to raise its energy prices from October, the second hike in a year.
Prices for standard variable gas and electricity for those affected will rise by an average of 3.7 per cent.
Almost a million homes supplied by the company are expected to be affected.
The decision comes as a result of the increase in wholesale energy costs, which the company said had risen by more than 20 per cent since April.
Another hike already came into effect in June this year, affecting a third of Scottish Power's customers.
Neil Clitheroe, chief executive of retail, said: “We have seen significant increases in wholesale energy costs since April, and like others in the industry, this means that we need to increase our prices.
“More than two-thirds of our customers are on fixed price products or other tariffs not impacted by this price change. Those customers affected by the price change will be contacted and offered the opportunity to move to a fixed price tariff alternative and avoid this increase."
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The Department of Business, Energy and Industrial Strategy said the announcement was "disappointing".
“This is why the government is introducing a new price cap by this winter to guarantee that consumers are protected from poor value tariffs and further bring down the £1.4 billion a year that customers have been overpaying," a spokesperson said.
Meanwhile Guy Anker, deputy editor of MoneySavingExpert.com, urged consumers to take matters into their own hands and switch supplier.
“For someone with typical use, those on Scottish Power’s standard tariff can save hundreds a year by ditching and switching. This is the fourth of the big six to announce a second price hike this year after British Gas, E.On and EDF, and as they’re like sheep we expect Npower and SSE to follow shortly."
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