Page last updated at 11:52 GMT, Thursday, 11 March 2010

Scottish Power is to cut gas bills by 8%

Gas rings
Scottish Power is the latest in a long line of companies to cut gas prices

Scottish Power has announced it is to cut gas prices by an average of 8% from the end of March.

The company said its 1.6 million domestic gas customers would save an average of £66 a year on their bills.

In addition, 60,000 customers who have been identified as vulnerable and who heat their homes with electricity are to get a £50 rebate.

On Wednesday, EDF Energy said it was reducing its residential gas prices by 4%, the second cut in six months.

Energy suppliers have been criticised for not passing on cuts in wholesale oil and gas prices to customers.

Wholesale gas prices dropped sharply from February 2009, and domestic prices dropped in the spring.

Scottish Power's director of energy retail, Raymond Jack, said: "Typically, less than 60% of a bill is now based on wholesale costs.

"Investment, government obligations and the delivery of energy to the home make up a significant portion of our bills."

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