ScottishPower hikes prices
ScottishPower customers face more pre-Christmas misery after the energy giant announced gas and electricity price hikes from 25 November.
Gas prices are set to rise by 2%, while electricity prices will rise by 8.9%. The increase is estimated to hit the wallets of around 2.5 million customers, adding an extra £52 to the average ScottishPower standard dual fuel bill.
The last ScottishPower price hike was back in 2008, where the standard dual fuel bill jumped to £1,369 from £959 - a massive 43% increase. Despite energy costs falling since then, today’s hikes still mean a dual fuel bill is 42% more expensive than at the start of 2008.
This announcement comes at a time when consumers are preparing to shell out more for their utilities. Only last week Moneywise reported that British Gas customers will see their gas and electricity bills rocket by 7% from 10 December while Southern and Scottish Energy have also announced that prices will increase by 9.4% at the start of December.
Ann Robinson, director of consumer policy at website uSwitch, says: "ScottishPower has joined the growing ranks of energy suppliers serving customers up with an inflation-busting pre-Christmas price hike. Just like Scottish and Southern Energy and British Gas, ScottishPower will be hitting customers over the winter months when energy usage is at a peak. The increase may be moderate, but the timing is miserable.”
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An increase in the general level of prices that persists over a period of time. The inflation rate is a measure of the average change over a period, usually 12 months. If inflation is up 4%, this means the price of products and services is 4% higher than a year earlier, requiring we spend and extra 4% to buy the same things we bought 12 months ago and that any savings and investments must generate 4% (after any taxes) to keep pace with inflation. Since 2003, the Bank of England has used the consumer prices index (CPI) as its official measure of inflation (see also retail prices index).