Scottish Power and EDF cut prices
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Over 10 million energy customers are set to see their bills fall from the 15 June 2007. Customers with both Scottish Power and EDF Energy will finally see their bills cut after wholesale prices fell significantly in the last 12 months.
Scottish Power customers will see their prices drop by up to 16.5% for gas and up to 5.5% for electricity, while EDF Energy customers will see their gas bills drop by 10.2%.
Karen Darby, founder of SimplySwitch.com, the price comparison and switching service, said:
“Wholesale energy prices have come down by over 60% in the last year. In February, British Gas sparked a price war by announcing cuts and other suppliers from the ‘big six’ followed suit. After criticism from Ofgem and Energywatch, Scottish Power and EDF Energy followed their competitors and dropped their prices.
"While the recent price changes have resulted in better deals for the consumer, energy prices still have long way to fall before customers can recover the extra amount they've had to pay in the last three years.
“Since January 2004, gas prices had risen by over 80% and electricity prices by over 50%. So far, none of the suppliers has reduced prices by anywhere near the amount that they raised them in the preceding 12 months, nor has anyone reduced prices in line with the drop in wholesale costs. These recent price drops only go a small way towards redressing the balance.
"Switching not only reduces household bills, but also helps boost competition and ultimately drives down prices. For the vast majority of customers, there are no penalties for leaving an energy company. Now that all the suppliers have announced a cut to their standard tariffs, it’s a level playing field – there’s never been a better time to switch.
“Customers should note that, even though tariffs are set to drop, as long as you remain with your original gas or electricity supplier, you are paying more than is necessary.
“As the current price war comes to a head, hopes of large-scale price cuts are fading fast. All providers have returned strong profits and, if wholesale prices remain low, we urge suppliers to offer more benefits back to the consumer.
“There remains a large gap between the cheapest and most expensive tariffs. Despite all the price cuts, there are still great savings to be made by switching suppliers.”
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