Scottish Power has joined British Gas and three other “big six” suppliers in raising its prices to meet Ofgem’s latest cap.
The firm’s 10% increase to the cost of its standard variable tariff comes hours after British Gas announced the same rise – meaning that five of the big six have moved to meet the regulator’s new cap.
Scottish Power’s move will affect 900,000 customers from April 1 when its standard plan will rise to an annual average of £1,254, while prepayment meter customers will also face a £106 (9%) price rise.
Richard Neudegg, head of regulation at uSwitch.com, said: “Five of the big six energy companies have now confirmed their price rises less than two weeks after Ofgem announced it is raising the level of the cap.
“Standard tariffs are not value for money, with or without a cap, and Scottish Power customers have been given a harsh reminder of this today.
“It’s now been confirmed that over £1 billion a year will be slapped on energy bills from April 1.
“There are nearly 200 energy tariffs which are currently cheaper than the new price cap will cost. Consumers can grab savings of over £300 by switching now.”
British Gas’s 10% price hike from April 1 will affect around four million customers who will also see their bills rise to an average £1,254, while prepayment meter customers will also face a £107 (9%) price rise.
Ofgem announced on February 7 that it would increase the price cap for default and standard variable gas and electricity tariffs by £117 to £1,254 a year from April 1 due to hikes in wholesale costs.
The watchdog said previously that those affected would still pay a “fair price” for their energy as the increase reflects a genuine rise in underlying wholesale costs, rather than provider profiteering.
The two suppliers follow E.ON, EDF and npower, who all announced last week that they would be raising the average price of their standard variable tariffs to £1,254.