Energy supplier Scottish Power has raised the cost of its dual fuel tariff by 7.8 per cent, effective 31 March.
The supplier blamed “months of cost increases” for the hike which will see electricity prices increase by over 10 per cent and gas prices by almost 5 per cent.
Approximately one third of Scottish Power’s customers will be effected.
Meanwhile, British Gas, which was rumoured to be considering a significant price rise of its own, today confirmed that it will freeze its prices until August this year.
Responding to both pieces of news, Stephen Murray, an energy expert at MoneySuperMarket, said: “It’s clearly open season for energy price movements. Wholesale costs are clearly a dark art, which is shown by the different percentage rises, particularly in electricity, that EDF, npower and today Scottish Power have announced. And, to add to the unpredictability of the market, a British Gas price freeze until August 2017.
He added: “The British Gas price freeze for its 6 million customers still means that, based on current prices, they are overpaying by around £170 on their energy and so the message is the same – don’t rest on your laurels, standard tariffs still remain amongst the most expensive, so the emphasis on the customer to switch now to a competitive fixed rate deal.”
Scottish Power is the second large energy supplier to raise its prices this month. On 3 February Npower revealed that its standard dual fuel tariff will become 9.8 per cent more expensive from 16 March.
Npower also blamed increasing costs, including costs associated with the national smart meter rollout and the capacity market, for its decision.
The RWE-owned suplier came under fire from consumer groups, government and the regulator, Ofgem for its price rise. Ofgem chief executive Dermot Nolan said it “seemed a lot” and reiterated his belief that there are no “significant” reasons why recent increases in wholesale prices should cuase supplier to push their prices up.
The Energy and Climate Intelligence Unit told Utility Week it was “bizarre” for Npower to blame the capacity market for pushing its costs up.