Price cut on way from under-fire energy firm

Energy firm ScottishPower is reportedly planning to reduce prices by 3.3 per cent after coming under fire for failing to pass on savings from the Government’s green levy shake-up.

The move will reduce typical household gas and electricity dual fuel bills by around £40 to £1,235 for ScottishPower’s 2.2 million customers on variable price tariffs, according to a national newspaper.

It is understood ScottishPower will also promise to pass on a further £12 rebate to all customers for the Warm Home Discount, which the Government has said will be funded through general taxation instead of through levies on energy bills.

Sign up to our daily newsletter

The i newsletter cut through the noise

But the tariff cut will only partly reverse increases of 8.5 per cent and nine per cent for gas and electricity respectively that ScottishPower hit customers with a month ago.

Labour last week called on ScottishPower and rivals npower and SSE to immediately reduce prices for households after the Government last month slashed green levies.

Caroline Flint, the Shadow Energy Secretary, said it was a “scandal” that three of the “big six” providers had still failed to pass on the savings a month after the green levy reductions.

British Gas has already reduced prices in response, announcing in early December that it would reduce bills by 3.2 per cent on New Year’s Day, scaling back hikes that saw prices go up by 10.4 per cent for electricity and 8.4 per cent for gas in November.

EDF and E.ON took the levy changes into account in the recent round of price rises, increasing tariffs on average by 3.9 per cent and 3.7 per cent respectively – far less than the increases announced by rivals.

SSE and npower are expected to follow ScottishPower by passing on levy savings.

They have already committed to cutting bills, but have yet to confirm how much or when the changes would take effect.

ScottishPower was not immediately available for comment.