Scottish Power has become the third major energy supplier to cuts its gas bills after announcing a 4.8 per cent cut on Tuesday morning.
The cut to its standard domestic gas price will come into force on 20 February and means the supplier follows British Gas and EON which reduced their gas bills (5 per cent and 3.5 per cent respectively) under increasing political pressure to react to falling wholesale costs.
At the same time as Scottish Power cut £33 per year from its standard gas tariff, the supplier has also launched a one-year fixed rate product which it says is one of the most competitive on the market.
Scottish Power’s chief executive of retail and generation Neil Clitheroe said: “Today’s decision has been made to benefit our customers and keep our prices competitive. We will continue to keep our prices under review.
“Our pricing reflects all of the costs that contribute to a customer’s bill. The wholesale price of energy accounts for half of a customer’s gas bill, but non-energy costs such as transmission and distribution networks and environmental and social obligations remain unaffected by any wholesale energy price movements.”
Despite Scottish Power becoming the third major supplier to cuts its standard gas tariff, MoneySuperMarket’s energy expert Stephen Murray said the cut “feels half-hearted when set against a recent 20 per cent cut in wholesale gas price”.
He added “the pressure continues to mount” on EDF Energy, Npower, and SSE who have not yet announced a cut to their energy tariffs.