SOURCE: Scottish Power PLC

June 22, 2006 13:11 ET

Scottish Power PLC to Raise Prices From July

GLASGOW, UK -- (MARKET WIRE) -- June 22, 2006 --

SCOTTISHPOWER TO RAISE PRICES FROM JULY AS WHOLESALE COSTS CONTINUE TO SOAR

ScottishPower today announced higher prices as a result of an 80% increase in wholesale energy costs over the last 12 months.

From 10 July 2006, electricity prices will rise by an average 10%, while gas prices will increase by an average 17%. Even after the price increases, ScottishPower's standard Gas & Electricity Offer will remain cheaper than British Gas for the fourth year running.

Willie MacDiarmid, ScottishPower's Director of Energy Retail, said: "As we indicated last month, wholesale energy costs continue to rise and are now a record 80% higher than this time last year.

"We have absorbed most of the impact and our last price increase announced in February was one of the smallest in the sector. However we now need to pass on some of these increased wholesale energy costs".

ScottishPower has also launched a new Capped Price Offer to shield customers from further increases until October 2008. Around one million of ScottishPower's 5.2 million customers will avoid the increase as they are already on a Capped Price Offer and switching now to the new offer will protect customers from any further rises for more than two years. Similarly, people paying by cheque can offset most of the increase by switching to Direct Debit, saving on average GBP79 a year.

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