Scottish Power hikes energy prices

3:41pm Friday 29th August 2008

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© Press Association 2008

SCOTTISH Power announced it was increasing gas prices by an average 34 per cent and electricity prices by nine per cent.

The company, which has 5.2 million customers, blamed soaring coal and wholesale gas costs for the increases, which will take effect from Monday.

It said the average dual fuel customer would see bills increasing by 25 per cent.

Scottish Power said the wholesale cost of gas had risen 65 per cent since February, while the price of coal had increased by 45 per cent in the same period.

It said about 1.2 million customers were currently protected by fixed- price tariffs. The company offered a new tariff guaranteeing prices until December, 2009.

The firm is the latest to hit households with steep hikes in gas and electricity prices in recent weeks, following moves by British Gas, EDF, E.On and Scottish & Southern Energy.

Willie MacDiarmid, Scottish Power's director of energy retail, said: "These are difficult times and we understand the financial impact this announcement will have on our customers.

"Although we're one of the last companies to announce increases, we're sorry we couldn't hold on any longer. However, we have worked very hard to protect people for as long as possible from these considerable increases in the wholesale market.

"We have tried hard to keep electricity prices as low as possible and our increase of nine per cent is the lowest in the sector.

"The continuing volatility in the global market for gas is directly contributing to increasing UK's domestic energy prices and is not immune to these rises."