ScottishPower to cut energy bills by 3.3pc in wake of government green levy deal

The green levies deal, announced at the start of December, followed months of talks between suppliers and ministers, who wanted to see bills cut by about £50 in the wake of the Labour energy price freeze pledge.

ScottishPower, along with npower and SSE, came under fire from Labour last week, which said it was a “scandal” that they had yet to pass on the saving – despite the fact a price cut had already come into effect for customers of rival British Gas.

British Gas led the lobbying for the watering down of a key energy efficiency scheme, resulting in cuts to levies of between £30 and £35.

A £5 cut to energy network charges as part of the deal will have to be paid back with interest the year after, in a plan that could leave consumers £2m worse off.

Figures for annual energy bills have been further confused after regulator Ofgem reduced the average consumption figures that it uses to calculate a typical bill.

Under the old figures, ScottishPower’s typical bill after the 8.6pc price rise was £1,424. Under the new figures, that has fallen to £1,275 – even before the 3.3pc cut.

Companies claim the 18pc fall in typical gas usage and 3pc cut in electricity is due to the success of energy-saving schemes, but critics suggest they reflect consumers being forced to ration their usage because of rising costs.

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