Scottish Power to slash gas prices from next month

Scottish Power is the last of Britain's "Big Six" utilities to slash retail energy tariffs by cutting gas prices by 5 percent following a drop in wholesale prices.

From February 27, Scottish Power's domestic customer's annual gas bills will fall by an average of 5 percent, affecting around 1.4 million customers, the company said last night.

"This equates to an annual reduction of 36 pounds for both dual fuel and gas only monthly Direct Debit customers," Scottish Power said.

Iberdrola-owned Scottish Power said that despite the reductions, prices would continue to rise in the longer term.

"Although there has been a short-term fluctuation (downward) in the wholesale gas market that has allowed us to pass on the reductions, the global demand for energy is increasing faster than its supply," company CEO Neil Clitheroe said.

"This will inevitably lead to higher energy costs in the long-term."

EDF Energy, Centrica, SSE, RWE npower, and E.ON have already announced reduced prices, with some cutting electricity tariffs and others decreasing gas prices.

British wholesale electricity and gas prices have fallen around 10 percent since the autumn, when suppliers last raised consumer bills.

Above-normal temperatures and a weakening economy have weighed on gas and power consumption. The "Big Six" suppliers - EDF Energy, RWE npower, E.ON, Scottish Power, Centrica and SSE - increased tariffs between August and November last year, passing on steep rises in wholesale prices, which helped drive UK inflation to a three-year high in September.