Power bills down, but still up

SCOTTISHPOWER was the last of the big six energy suppliers to announce a price cut this week, but the average bill remains nearly a third higher than two years ago.

ScottishPower revealed on Thursday that prices would come down by 8 per cent on 31 March, completing a round of reductions by the main suppliers in recent weeks. The average ScottishPower dual fuel bill will fall from 1,362 to 1,289.

However the average UK dual fuel bill is still 34 per cent – or 330 – higher than in January 2008 after a series of steep price increases that year and early in 2009.

Household energy bills soared by 42 per cent in 2008, adding a total 4.3 billion to household costs. But the price cuts of the past few months have shaved just 8 per cent – or 102 – off the average standard dual fuel bill, according to figures published by comparison website uSwitch.com.

The typical household bill in January 2008 was 912 before rocketing to 1,293. However those on direct debit online tariffs – 5 per cent of UK households – have fared significantly better, with online rates reduced by 19 per cent. Online plans are now some 300 a year cheaper than the typical standard tariff.

Ann Robinson, director of consumer policy at uSwitch.com, said: "This 4 per cent or 48 dip in energy prices will seem like a drop in the ocean to cash-strapped consumers, especially as most of the cuts this year came too late to help people with their winter bills."