Which? is warning that price rises announced by Scottish Power today could be the first in a new wave of hikes from the ‘Big Six’ energy companies.
Scottish Power revealed that it will increase gas prices by 19% and hike electricity charges by 10% from 1 August 2011.
This follows price rises of 2% for gas and 8.9% for electricity in November 2010.
Rising wholesale energy prices
Scottish Power claims that the price rises are a response to rising wholesale energy prices – and Which? is warning customers that other energy companies may follow suit.
Which? executive director Richard Lloyd says: ‘These price hikes from Scottish Power will be a shock for its millions of customers already struggling with the rising cost of living, and warnings from other suppliers suggest that more bad news is to come.
‘This is yet another example of the Big Six blaming the wholesale energy market for increases to domestic customers’ bills, but energy companies have a lot of work to do to convince consumers that energy prices are justified.’
If you’re worried about your gas and electricity bills, there are a number of simple measures you can undertake around the home to cut your energy use. Check out our top tips for using less electricity and how you could install an energy monitor to keep a closer eye on how much electricity you are using.
Energy tariffs must be transparent
Which? is calling on the energy companies and Ofgem to make energy tariffs clearer and more transparent. Even if wholesale prices do increase, with simple tariffs customers can more easily compare prices and switch.
Are you frustrated by this announcement? Will you be switching to beat the price hikes? Join in the discussion at Which? Conversation.
Lower your gas and electricity bills
You can compare energy prices and switch to a new gas and electricity supplier on Which? Switch. People who switched with us between 1 October and 31 December 2013 are predicted to save an average of £234 a year on their bills.
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