ScottishPower, having absorbed soaring wholesale costs longer than most of its main rivals, today announced higher gas and electricity prices plus a new Capped Price Offer shielding customers from further increases until October 2007.

Willie MacDiarmid, ScottishPower's Director of Energy Retail, said: "Like all energy suppliers, ScottishPower has been hit by the unprecedented rise in wholesale prices. We have frozen prices for as long as possible, but unfortunately are now forced to pass on part of this increase to customers."

From 17 October electricity prices will rise by between 5% and 8%, depending on payment method and region, with gas going up by 12%.  These increases are significantly less than others announced recently, with competitors imposing increases of up to 14.2% on both gas and electricity. This means that ScottishPower's standard gas and electricity offer will still be cheaper than many of its main rivals including British Gas.

The increases are in response to the continued steep rise in wholesale energy costs, up nearly 70% since April 2004.

Customers can however protect themselves from further increases for two years by switching to ScottishPower's new Capped Price Offer. Similarly, customers who pay by cheque can offset most of the increase by switching to Direct Debit, saving up to £64 a year.

To protect its most vulnerable customers ScottishPower is offering a package of measures, including insulation grants which can save an average household up to £200 a year.  ScottishPower has also restricted the increase for prepayment electricity customers, to between 5% and 6% compared to rises of up to 14.2% from other energy suppliers.

The savings for vulnerable customers can be achieved through:

• A £1m trust fund offering financial support to children and young people living in fuel poverty
• Free cavity wall insulation for all customers who are on Government means-tested benefits, Tax Credit, or Pension Credit
• Free loft insulation for all customers who are on means tested benefits, Tax Credit, or Pension Credit.
• A grant of £30 to customers on ScottishPower's Carefree Priority Service Register paid in time to help with their winter fuel payments

Further information: 

Simon McMillan                                         0141 566 4875