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The Scottish Power double price rise!


Money - Seeing the future

Last month, I received an email from Scottish Power with their price rise. Is it simple? Is it hell! There are two unit prices for electricity and two for gas, three out of four will be increasing. Then there are the annual discounts for taking both gas and electricity and the on-line discount. They are being cut by a total of £11.55. It’s complicated, but the unit price of gas is going up by over 12%. Can it get worse? Yes it can. Now they want over 24% extra!

I’m not going to type out all the numbers and explain the maths. It is complicated, because of all the different increases. I use mostly gas and the unit price before was 3.068p and that will increase to 3.457 on the 3rd of December, a 12.68% price increase. My Energy Saver 16 tariff runs out on the 1st of January and that could mean an increase to 3.924p.

 

A massive 27.9% increase!

Yes, a 27.9% increase, if I do nothing and they switch me to the standard tariff. They are offering me  their Online Fixed Price Energy May 2014 Offer. The unit price on that offer 3.815p an increase of:

Just 24.34%

That’s alright then, thank God David Cameron said something. They are going to change the law (eventually) and they say we will then be offered the cheapest tariff. Is that the cheapest tariff, with a the first 225 units costing 50p each? It all sounds like they are pandering to the energy companies and they will continue to break new records when it comes to making profits.

What can we do? Switch?

Yes, the finance writers on the comparison sites will tell you to switch. To quote Mandy Rice-Davies, “They would say that wouldn’t they?” If they paid me commission to get you to switch, I would probably tell you to spend your lunch hour on the computer or on the the phone talking to their bloody call centres.

What am I going to do? I’ll wait until the price rise kicks in and then phone them up before my current contract and the Energy Saver 16 expires at the end of December and ask for… Guess what? The cheapest tariff!

If you’re not with Scottish Power, You might like to check letters and emails from your supplier too. Please comment with your moan about your energy company. They are trying to rob the most vulnerable in society. Some people because of illness or disability have to keep warm all day. I expect politicians will tell them to go to bed, wear bed socks and a hat. Watch telly in a woolly and other inane advice and reassurance will dribble from the mouths of politicians this winter. It is time to admit that wholesale energy prices are being fixed, there is not competition in the energy market and that energy companies are making record profits. It is time to regulate or nationalise.

One response

  1. Pingback: The Saturday review | Winter is coming « Mike10613's Blog

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