ScottishPower has announced that it will also be cutting its gas prices, making it the final of the Big Six energy providers in the UK to cut energy bills for consumers.
Last month, British Gas sparked a flurry of price cuts as the first major provider to offer its customers a reduction in energy bills, but ScottishPower was seemingly saving the best for last, as it has beaten its competitors by giving its customers the biggest reduction yet, of eight per cent.
The reduction will amount to an average £66 being cut from customers' energy bills, a bigger cut than its rivals – around the £40 to £50 mark.
But, while ScottishPower's £66 price reduction in the average gas bill beats the £55 average saving for British Gas customers, British Gas is alone in being the only major provider to have already put the price cuts into effect, with the other cheaper tariffs not coming into force until the end of March.
ScottishPower has also announced that it is offering a £50 rebate to its vulnerable customers who heat their homes using electricity instead of gas.
Commenting on the recent price cuts, Ann Robinson, director of consumer policy at comparison website uSwitch.com, says: "Today's move completes the full round of price reductions making it a full deck of cards for consumers."
She added "It's now highly likely that we are going to see a period of stability around household energy prices. This is good because consumers now know where they stand, but disappointing as energy prices are still far higher than just a couple of years ago and the price cuts we've seen to date are not going to make up this ground."
In 2008, energy prices soared by 42 per cent, or £381, but suppliers only cut prices by 4 per cent, or £54, last year.
The fact that consumers are still paying £280 a year more than they were two years ago is "putting even more emphasis on the need for consumers to start managing their energy costs," Ms Robinson urged.
"We can all do this by making sure we pay the lowest possible price for our energy and learning to use less of it. Online energy plans consistently offer the most competitive prices - currently costing around £300 a year less than suppliers' standard plans and offering households a real opportunity to take their energy bills back to pre-2008 levels."
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