As if households have not felt the squeeze already, Scottish Power have announced that they will be increasing gas bills by 19% and electric bills by 10% this August.
How do they justify such a huge increase? Scottish Power stated that the price increase was a reflection of the continued increase in the cost of buying energy (gas and electric). They have no choice but to raise prices by almost 20%
They have chosen to raise the prices at the height of summer when there is a huge reduction in household gas bills. The real pinch will be felt by the 2.4 million Scottish Power customers when autumn comes.
700,000 Homes Protected By Capped / Fixed Contracts
Not all customers will experience these price rises though as 700,000 households have opted for either a capped or fixed price contract. However, when these contracts expire they may then be force on to the higher tariffs.
8.9% Electricity Rise in November 2010
What is most shocking is that Scottish Power raised electric bills by 8.9% just 7 months ago. This means that by August both gas and electric prices will have increased by 19% in one year.
Scottish Power still claim to offer the cheapest product currently on the market.
Scottish Power are now owned by Iberdola, a Spanish power company.
- Scottish Power announcement: ScottishPower Increases Gas And Electricity Prices And Launches The Cheapest Product Currently Available
- Iberdrola Shareholders and Investors