New utility price hike 'will encourage more consumers to switch'
Published On 4 February 2008
The recent decision by another major utility supplier to increase its prices will encourage more consumers to consider switching provider, an industry expert has said.Late last week (February 1st), utility provider ScottishPower said that its prices would be increasing for both gas and electricity. The firm confirmed that the average increases would be 15 per cent and 14 per cent respectively.
Mike Stevenson, of consumer group Which?, said that the move, which follows increases from a number of other major utility suppliers, should encourage consumers to seek out the best possible deals.
He explained: "This most recent increase will add nearly £140 a year to the bill of a ScottishPower customer and follows the massive rises announced recently by npower, EDF and British Gas.
"This means that the majority of UK households will now be feeling the impact of this year's price hikes.
"Those hardest hit will be customers who have never switched before, who are most likely to be on a standard tariff and paying by cash or cheque every quarter when their bill arrives."
Mr Stevenson added that consumers should consider opting for paperless billing or pay by Direct Debit, as many utility suppliers still offered "impressive discounts" for those who use these systems.
