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Saturday, 19 January, 2002, 14:06 GMT
Price hike for gas customers
Gas fires
Gas users will be paying more from next month
Gas bills for ScottishPower customers are to rise by an average of 6% from next month, it has been reported.

The increase of more than three times the rate of inflation will affect the company's 800,000 domestic UK customers, a third of whom are in Scotland.

The average increase of 35p a week, or �18.20 a year, will be the second price rise in the last 11 months imposed by the company.

Last March, ScottishPower upped prices for domestic gas customers by 5%.

Customers are expected to be notified of the latest increases by letter next week.

Price review

The expected rise follows a similar increase of 5.3% announced by Scottish Gas last month, amounting to a total increase of 10.3% since March.

ScottishPower today declined to confirm the price rise, saying only that customers would be the first to know of any changes.

A spokesman said: "In common with other energy companies, we are reviewing prices but have not completed this process.

"All we have said is that whenever we do make any increase we will remain a lot cheaper than British Gas.

"Since the market for gas was opened to competition in 1997, 250,000 British Gas customers in Scotland have moved to ScottishPower, saving a total of �20m on their bills."

Any further price rise was expected to be attacked by pressure groups and customer watchdogs.


All the signs are that even after these punitive price increases, the poorest consumers are less likely or less able to switch supplier

Audrey Gallacher, energywatch
Energywatch Scotland, the independent watchdog for gas and electricity consumers, said the expected rise was "wholly unjustified" given stable wholesale gas prices.

It accused ScottishPower of blatant "opportunism" so shortly after Scottish Gas had increased its prices.

Watchdog director Audrey Gallacher said: "Research commissioned by energywatch in the wake of the Scottish Gas increase indicated that customers are set to desert Scottish Gas in droves.

"It is highly likely that ScottishPower will suffer a similar fate as gas consumers follow our advice and shop around for a better deal. Energywatch Scotland is once again arguing that the market is not working for the most vulnerable of energy consumers.

"Between them ScottishPower and Scottish Gas have a market share of around 90% of the Scottish market.

"All the signs are that even after these punitive price increases, the poorest consumers are less likely or less able to switch supplier.

"This can be for a number of reasons, such as being blocked from switching because they are in debt to their current supplier.

"Whatever the reason, these price increases will cause the most hardship to the poorest in a sector where competition is almost non-existent."

See also:

31 Dec 01 | Scotland
Blackout over for most households
30 Nov 00 | Scotland
Executive pledge on green energy
26 Jul 99 | The Company File
Key approval for Scottish Power bid
02 Sep 98 | Sci/Tech
Changes in the wind
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