ENERGY firm ScottishPower has revealed plans to reduce dual-fuel prices as it passes on savings from the Government's green levy shake-up.

The change will benefit 2.2 million households and reduce typical bills by around 42 to 1,199 a year for those paying by direct debit.

There will also be a 12 rebate to all customers for the Warm Home Discount, which the Government says will be funded through general taxation instead of through levies on energy bills.

Loading article content

The 3.3 per cent price cut is expected to take effect from January 31.

The move comes a week after Labour called on ScottishPower and its rivals npower and SSE to immediately reduce prices for households after the Government cut the cost of the Energy Company Obligation.

British Gas has already announced price reductions, cutting bills by 3.2 per cent on New Years Day, with Edf and Eon also taking the levy changes into account by increasing tariffs on average by 3.9 per cent and 3.7 per cent respectively, less than increases announced by other firms.

SSE and npower are expected to follow ScottishPower by passing on levy savings, but have not yet confirmed how much or when any changes would take effect.

Late last year, npower announced plans to send hundreds of North-East jobs to India as part of 1,460 redundancies across the UK.

It said it was cutting 430 jobs at its Rainton Bridge site in Houghton-le-Spring, Wearside, subject to consultation, and closing branches in Thornaby, near Stockton, and Peterlee, east Durham.