Scottish households are will be experiencing a hike in utility bills in the near future, as Scottish Power becomes the latest energy firm to announce price increases for gas and electricity.

Scottish Power will be increasing prices by 7% from December 3, making the average annual fuel bill for the firm’s 2.3m customers increase to £1,271.

The company says the increase in prices has come about due to an increase in the cost of transporting gas and electricity to customers' homes.

Scottish Power said it regrets the price-hike, but Adam Scorer of Consumer Focus said: "The volley of price hikes all coming in during the winter period will fuel consumer concerns about the energy market.

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"Every time this happens it makes it difficult for consumers to believe that price rises are driven by real supply and demand issues.

"This does not mean that wholesale price pressures are not real. But when half the market raises prices in just four days, consumers will question whether this is in response to volatile commodity costs or simply pack behaviour."

Neil Clitheroe, chief executive of retail and generation at Scottish Power said: “We will be writing to all those affected customers over the coming weeks explaining what the price increase will mean for them.

"We understand that this is a difficult time for many people and we encourage our customers to contact us."

The changes translate as an 8.7% increase for direct debit customers, while those who pay by cash and cheque will see prices rise by 1.4%. Pre-paid meter users will experience an increase of 8.6%.

Ann Robinson, of price comparison website Uswitch said: "Consumers will be disappointed and angry that these increases will be hitting them in the winter when the blow will be felt hardest."

(IT)