Which? analysis reveals that the recent Scottish Power energy price hikes are skewed in favour of high users, leaving customers who use less energy significantly worse off.
Due to Scottish Power’s ‘tiered’ pricing system, a 10% overall increase in Scottish Power’s electricity prices could translate into a 20% rise for a low user or a 15% rise for a medium user.
Scottish Power customers pay a higher rate for the first ‘block’ of units (Tier 1) they use and a lower rate for the rest (Tier 2). The price of Tier 1 units has been increased by 33% and the price of Tier 2 units by just 2%.
Adds insult to injury
Which? executive director Richard Lloyd says: ‘Knowing that they will be penalised for using less energy adds insult to injury for Scottish Power customers. On one hand, we’re being charged for carbon reduction programmes, and on the other hand we’re being punished by energy companies for trying to cut down on our energy usage.
‘70% of people find the number of tariffs confusing, so Which? is calling for the elimination of complex tiered pricing and the introduction of a standardised format so that people can easily compare prices. Energy companies should explain price changes in a way that is relevant to individual customers.’
Check how much you could save on your energy bills by switching tariffs and suppliers using our Which? Switch comparison site.
Fairer energy industry
Which? is campaigning for a fairer and more transparent energy industry. We’re asking for a standardised format for all tariffs, with a daily charge covering fixed costs and a unit charge covering the actual energy used.
This means an end to complex ‘tiered’ pricing and any discounts should be subsumed into the unit charge. Find out how you can support our campaign by visiting our energy campaigns area.
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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