Scottish Power to cut bills by 3.3% after green levy rollback

Scottish Power has announced it will shave an average of £42 off its customers’ energy bills, following savings made from the government’s cuts to social and environmental taxes.

The energy supplier, along with Npower and SSE, was criticised last week for failing to implement the savings, following the government’s decision to help reduce energy bills by £50.

“We are committed to delivering the reductions as agreed with the government and will make an announcement this week”, a Scottish Power spokesperson said.

The firm is also expected to make a further reduction of £12 to all customers for the Warm Home Discount, funded through general taxation.

The chancellor George Osborne said in December that by cutting back on green levies, British families were able to see a reduction in their energy bills, but added that this would not compromise the UK’s carbon reduction targets.

British Gas has already implemented the measure. However, all ‘big six’ energy companies – British Gas, Npower, EDF, SSE, E.ON and Scottish Power – announced a price rise over the past few months, blaming environmental regulations.

Scottish Power announced an 8.8% increase on energy bills, which means that customers having a fixed-price tariff will see no changes from the £50 reduction, according to the Telegraph.

Meanwhile EDF said in November that if the government rollback on green levies was not sufficient, it would increase prices more than the 3.9% it had already announced.

MPs strongly criticised the move and told energy bosses that people could not afford to pay high bills. They replied by saying green levies were a “regressive poll tax, effectively a stealth tax”.

Further reading:

Green energy firms Good Energy and Ecotricity break mould with winter price freezes

Utility bill increases here to stay, says National Audit Office

Business leaders to PM: cutting green taxes ‘shortsighted’

UK second worst for fuel poverty in EU – as groups warn over coming ‘crisis’

The Guide to Limitless Clean Energy 2013