Watchdogs want people to shop around

Research for industry regulator Ofgem said consumers north of the border were wasting up to �72 a year by staying with the former monopoly companies.

Its studies also found that people in the north of Scotland had the lowest electricity switching rate in the UK.

Ofgem urged people to shop around - but the companies defended their prices.

Energywatch Scotland, the gas and electricity watchdog, also urged consumers to change suppliers.

Competitive pricing

It said research had suggested that four out of five electricity customers in the north of Scotland had remained with Scottish Hydro Electric, the former monopoly supplier.

Only one in three had switched from ScottishPower in the south of the country.

The watchdog believes the reluctance to swap makes the former monopolies complacent when it comes to competitive pricing.

Only by customers saying no to their local suppliers will the former monopolies act to bring down their prices John Hanlon Energywatch Scotland

Chairman John Hanlon said: "Both companies charge significantly higher prices to their local loyal customers than they offer new customers in other parts of Great Britain.

"I don't know why consumers put up with it when they have the choice to make a simple switch and save a substantial amount of money each year.

"Only by customers saying no to their local suppliers will the former monopolies act to bring down their prices."

His message was echoed by Iain Osborne, Ofgem's director of consumer markets.

He said: "There are no prizes for loyalty in the energy market.

"We would urge all customers in ScottishPower and Scottish Hydro Electric areas, who have never moved from the companies or Scottish Gas, to shop around for a better deal for their energy."

Ofgem's comments are surprising given that their recent reports have shown that competition in the south of Scotland is as high as the rest of the UK and greater than it is in London ScottishPower spokesman

Ofgem's research found that people living in areas where ScottishPower and Scottish Hydro Electric used to have monopolies were paying an average of �41 and �29 more than they had to each year respectively.

They were also paying �31 more than they had to if they received gas from Scottish Gas.

But ScottishPower said the figures were "misleading" because they only covered one tariff.

"The point has to be made that because customers within ScottishPower are switching to another method of payment, such as dual fuel, they can make significant savings," said a spokesman.

He added: "Ofgem's comments are surprising given that their recent reports have shown that competition in the south of Scotland is as high as the rest of the UK and greater than it is in London."

A spokeswoman for Scottish Hydro Electric said: "We believe the package of goods and services available to our customers represents good value for money and are committed to doing everything we can to maintain our high standards of service for years to come."

A Scottish Gas spokesman said: "Customers have chosen to stay with us for a whole variety of reasons, not just price, but the service and quality we offer.