Scottish Power is set to increase its energy prices starting this October. It is already the second price hike announced in a year.
The prices for standard variable electricity and gas for those who are affected by the said hike will rise by an average of 3.7 percent.
Nearly a million homes that are supplied by the firm are expected to be affected.
The decision comes as an outcome of the rise in costs of wholesale energy, which the firm said had increased by more than 20 percent since April.
Last June, another price increase already came into effect this year. It affected a third of the customers of Scottish Power.
The chief executive of retail, Neil Clitheroe, stated: “We have seen significant increases in wholesale energy costs since April, and like others in the industry, this means that we need to increase our prices.
He added: “More than two-thirds of our customers are on fixed price products or other tariffs not impacted by this price change. Those customers affected by the price change will be contacted and offered the opportunity to move to a fixed price tariff alternative and avoid this increase.”
On the other hand, the Department of Business, Energy and Industrial Strategy said that the announcement was “disappointing.”
A spokesperson stated: “This is why the government is introducing a new price cap by this winter to guarantee that consumers are protected from poor value tariffs and further bring down the £1.4 billion a year that customers have been overpaying.”
Meanwhile, the deputy editor of MoneySavingExpert.com, Guy Anker, called on the consumers to take matters into their own hands and change to a new supplier.
He stated: “For someone with typical use, those on Scottish Power’s standard tariff can save hundreds a year by ditching and switching. This is the fourth of the big six to announce a second price hike this year after British Gas, E.On and EDF, and as they’re like sheep we expect Npower and SSE to follow shortly.”