Scottish Power latest energy company to increase prices
24/10/2013
Scottish Power has raised electricity prices by an average of 9%, whilst gas prices are expected to rise by an average of 8.5%. The price rises will become effective from 6th December 2013, just in time for the Christmas period in a move that follows a dramatic price increase from British Gas to become the fourth major energy supplier to increase their prices.
It is believed that the price increases occurring across major energy suppliers is a result of political issues which includes a government review of ‘green levies.’ Additionally, Scottish Power was fined £8.5 million for misleading promotions via doorstep and telephone sales.
As a result of these plans to increase energy prices, the average Scottish Power customer with a dual-fuel will likely see an annual increase of around £113 to around £1,424 per year. However, it is worth noting that this will different across the country, with different areas being subjected to different levels of price increases, for example Southern England will likely see rises of as much as 10.2%, whilst part of Scotland will be as little as 7.3%.
Neil Clithroe, Chief Executive of Scottish Power blamed the rises on a myriad of causes which ranged from the rising wholesale cost of energy, the cost of delivering energy to peoples homes amongst government environmental initiatives and social schemes such as wind farm payments. Clithroe was further quoted as saying "With an increase in costs for delivering compulsory schemes to reduce carbon emissions and improving energy efficiency in homes, we unfortunately have no other option than to pass these on by increasing our prices for customers."
As a result, David Cameron has issued a review of green levies as well as a competition test for the energy market to ensure the market has remained competitive. However, these moves have been derided as a “panicky-U-turn” by Nick Clegg, leader of the Liberal Democrats who also suggested implementing some environmental policies in a more cost-efficient manner.
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