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ScottishPower announce large price rises

Jun 8th, 2011
by Matthew Spencer.

ScottishPower have stirred up the domestic energy market by announcing large price rises

ScottishPower logo

The company have announced price rises as high as 19% for gas tariffs, and 10% rises for electricity.

These new prices will come into effect on 1 August.

There is doubt from some over whether there is sufficient evidence to justify rises as steep as 19%.

ScottishPower have said that wholesale price rises are the causing factor, and they are merely passing on those costs, but there is concern that suppliers are not providing evidence to prove that this is in fact the case.

It is now expected that rises from the other major suppliers will soon follow, with Centrica and Scottish and Southern Energy already warning of price rises for the end of this year.

Ofgem is currently investigating suppliers under accusations of profiteering. Claiming that wholesale price rises are quickly passed on to customers, whereas wholesale price drops are not.

With most, if not all of the other major UK suppliers expected to raise prices, there are increasing calls that Ofgem acts quickly to protect consumers.

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Posted in: Business Electricity, Business Gas, Utilities Market Regulation, Wholesale Utilities Markets.
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