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.
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|
|EDF Energy||Gas||5%||7 February|
|Scottish Power||Gas||5%||27 February|
|British Gas||Electricity||5%||12 January|