The announcement that Scottish Power is to raise its energy prices has left many households across the country worrying that they may face debt management problems when winter comes around.
Scottish Power revealed that from August 1st 2011, its electricity charges will be rising by 10 per cent and gas prices will jump by 19 per cent. For many families, this will mean nearly £200 added to their annual dual-fuel energy bill.
This is not the first rise in energy charges for Scottish Power within the last twelve months; the company increased electricity bills by 8.9 per cent and gas by 2 per cent in November 2010.
The announcement has also prompted concerns that other energy suppliers such as E.ON, British Gas, Scottish & Southern Energy, npower and EDF Energy may also raise their prices in line with Scottish Power.
Audrey Gallacher, who is the head of energy at watchdog Consumer Focus, said:
“This huge increase will be a body blow for consumers and we fear other firms will follow Scottish Power’s lead.
“Companies have been softening customers up for price rises for months but customers will be shocked at the scale of this rise. Every household in the country will now be bracing themselves for the impact.”
The announcement comes in the same week that the Institute of Fiscal Studies (IFS) published research showing that a number of the poorest pensioners in the UK are facing a choice between eating and heating their homes in periods of cold weather.
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