Energy giant ScottishPower is preparing to cut household bills by 3.3 per cent, becoming the fourth major supplier to pass on savings from the government’s deal to cut green levies, The Telegraph has reported.
The electricity and gas provider is expected to cut just over £40 from a typical dual fuel bill for its 2.2m customers on variable-price tariffs, taking their annual bills down to about £1,235.
The 3.3 per cent reduction will provide only a partial reversal of the 8.8pc rise it announced in October, which came into effect a month ago.
The vast majority of the 1.4m ScottishPower customers who are on fixed-price tariffs will see no benefit from the change.
As well as the tariff cut, the supplier will also pledge to pass on to all customers a £12 rebate from the Warm Home Discount, which is currently funded through levies on energy bills. Ministers have agreed to fund it through general taxation instead.
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.
Companies claim the 18 per cent fall in typical gas usage and 3 per cent 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.