Scottish Power has returned fire in the ongoing price war between gas and electricity providers, reducing its capped deal rate to £861.25 annually to make it the cheapest capped dual fuel product on the market, according to moneysupermarket.com.
But the company's decision to confine its price cuts to a capped dual fuel product sidesteps the need for more substantial cuts affecting all customers, moneysupermarket.com's head of utilities Paul Schofield insists.
"Scottish Power has avoided the main issue by electing to reduce prices on what is essentially a niche product," he observed.
"Consumers would be very foolish to swap to a capped product at present, with price cuts happening on an almost daily basis."
Although the new, lower product pricing will protect buyers from any fuel price increases before March 2008, such increases are unlikely in any case, Mr Schofield argued.
The chief executive of SimplySwitch.com, Karen Darby, meanwhile agreed that the Scottish Power deal is still not as competitive as others on the market, representing only a five per cent saving on an average annual bill.
Customers would do better to look out for more comprehensive cuts from other providers, she added.To compare gas and electricity prices, click here.
© Adfero Ltd