ScottishPower has made cuts in its gas and electricity provider to lower its prices –a 16.5% decrease in gas prices and 6% in electricity.
The company announced the cuts at the beginning of May, becoming the sixth and final gas supplier to cuts its customer’s energy bills and the change came into affect on June 15th.
ScottishPower claims that the ‘typical direct debit bill will be down £75 to £836 per year’.
The first supplier to cut its bills was British Gas, back in February and then again in April. Powergen and NPower also announced cuts in February, with Scottish and Southern energy joining in March.
The two remaining providers - EDF Energy and ScottishPower - were both denounced by OfCom for not joining the price war, and finally, both announced they would be cutting prices in April, with ScottishPower’s coming into affect this month.
Willie MacDiarmid, ScottishPower’s Director of Energy Retail, said: “With the reductions taking effect, we’re even further committed to ensuring our customers receive value for money and the best value ScottishPower deal for them- that’s why we have created the Savings Challenge.”
The ScottishPower Savings Challenge
aims to encourage people to make changes to their accounts in order to save money.
ScottishPower says that more than 80% of its customers could pay less by making simple changes – for example switching to Direct Debit can save up to £125 and online account management can save a further £64.
But many industry commentators have condemned the price cuts, with uSwitch.com calling them ‘selective’ saying that while direct debit customers will benefit substantially from the change, people who pay by cheque or cash are left out, with a small cut in gas and no change ion electricity.
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