Scottish Power has announced a price hike of 5.5 per cent which will add an average of £63 to the typical annual dual fuel bill.
It will affect around 960,000 customers paying its standard variable tariff. They will see their bills rise to an average of £1,211, from £1,147, from 1 June.
The rise follows on from British Gas and EDF who have both recently revealed price hikes.
Prices for 960,000 customers to rise by £63 to an average of £1,147 from the start of June
Customers with a SVT who pay by direct debit will see £63, on average, added to their bills – but for those who pay via quarterly credit the increase is higher, an extra £85 or 6.9 per cent rise.
The provider has blamed a rise in wholesale energy costs and the price of ‘non-energy’ costs on the increase.
Neil Clitheroe, Scottish Power chief executive for retail, said: ‘Unfortunately our standard variable prices are having to go up.
‘This reflects rising wholesale energy costs and compulsory non-energy costs. Two-thirds of our customers are unaffected.
‘We will be contacting all customers affected by the price change to give them the opportunity to move to a fixed price tariff alternative and avoid this increase.’
British Gas has already confirmed a price hike of 5.5 per cent, or £60 a year, for those with a standard variable tariff from May 29, while EDF has said prices will rise by 1.4 per cent, or £16 a year, from June 7.
Around 960,000 Scottish Power customers with a standard variable tariff will be affected
It’s likely the remaining big six energy providers, Npower, SSE and Eon, will soon follow suit.
Stephen Murray, energy expert at Money Supermarket, said: ‘Unsurprisingly, we’re into the domino effect with energy price rises and the only surprise here is that’s it’s been over a week since the last price rise, from EDF.
‘Today’s announcement of a 5.5 per cent rise from Scottish Power may not sound like a big one, but it’s the equivalent of £63 a year, on top of what households are already paying if they’re on a standard variable tariff.
‘It’s probably the last thing people are thinking about during this mini heatwave we’re enjoying, but we’d encourage you to take action today to stop yourself paying some of the highest prices in the UK energy market.
‘If you’re on a standard variable tariff and haven’t switched for a while, the chances are you’re paying way over the odds for your energy.
‘It just takes five minutes online to switch and you will save more than £250. It’s as simple as that.’
Victoria Arrington, spokesman for energyhelpline, said: ‘The energy price rise wave is full on at this point – the majority of the Big Six have now announced price rises happening within the coming weeks.
‘Scottish Power’s rise is only the latest of the stinging hikes eating into the pay cheques of people across the UK, and this is the biggest price rise so far from a major supplier – a real whopper at 5.5 per cent with 960,000 homes affected if they don’t switch.
Price rise blamed on rising wholesale energy prices and the cost of Government policies
‘No energy customer should be on a standard tariff as they are almost always bad value for money.
‘Thankfully, there are some phenomenal energy deals out there – right now the cheapest tariff on our site is £806, which means consumers could save £405 on average by switching to new tariff.
‘It’s an easy and quick thing to do – all it takes to access them is a few clicks, or a quick phone call.’
Standard tariffs have been talked about a lot in the past year and they are usually the most expensive available.
The Competition and Markets Authority published the results of an investigation into the energy market in 2016 that found those on these tariffs were collectively overpaying by around £1.4billion every year.
It is now expected a price cap will be introduced for all households with one of these bills, but the timing for when this will be implemented, and the amount it will be, are yet to be confirmed.
Cut your energy bills
If you have been stuck with the same provider for some time, chances are you could shave hundreds off your energy bills.
Millions of households are sat on their provider’s most expensive, out-of-contract deals. But switching to a better deal can instantly save you money.
According to This is Money and MailOnline’s expert partner service, energyhelpline, one in ten families could cut their annual dual fuel bill by £537 a year by ditching an switching.
You can do your own postcode comparison in minutes using the tool above – or here – to find the best price.