Scottish Power cuts gas prices by 5%
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Scottish Power has become the last of the Big Six energy companies to cut its prices with an announcement last night that gas prices will fall by 5% from 27 February.
"This equates to an annual reduction of £36 for both dual fuel and gas only monthly direct debit customers," says a spokesperson for Scottish Power.
EDF Energy, British Gas, SSE, npower and E.ON have already announced price cuts over the past week, with some choosing to cut gas or electricity tariffs only.
The price cuts follow a fall in the cost of wholesale electricity and gas prices, which have dropped by around 10% since the autumn.
Short-term fix
However, Scottish Power warns that the price cut is not the start of a new downward trend for energy prices: "Although there has been a short-term fluctuation (downward) in the wholesale gas market that has allowed up to pass on today’s reductions, the global demand for energy is increasing faster than its supply," says Neil Clitheroe, Scottish Power’s chief executive. "This will inevitably lead to higher energy costs in the long term."
The table below gives a full breakdown of all the price cuts announced by the Big Six
| Provider | Utility | Price cut | Date begins |
|---|---|---|---|
| npower | Gas | 5% | 1 February |
| EDF Energy | Gas | 5% | 7 February |
| Scottish Power | Gas | 5% | 27 February |
| SSE | Gas | 4.5% | 26 March |
| British Gas | Electricity | 5% | 12 January |
| E.ON | Electricity | 6% | 27 February |
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It doesn't come as a surprise to me that British Gas have only dropped their electricity prices and SSE have only dropped their gas prices because, presumably, they have less customers in these areas as they are not their original business. Therefore they'll lose less money and the majority of their loyal customers don't get any benefit yet again. Why can't all suppliers be consistent and dropped the prices for both?!
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Also, the price cuts generally seem to be only on the standard tarrifs, and lots of people are on various 'special' or online deals to which these reductions do not apply, thereby, as in the comment above, diluting the real cost of these headline figures to the companies themselves. OfGen seems to be something of a tiger with no claws or teeth.
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