Scottish Power follows rivals to cut gas bills by 8%

Scottish Power today became the last of the "big six" energy providers to cut gas bills.

The group will make an average reduction of 8% from 31 March, benefiting about 1.6 million customers.

Scottish Power, which is owned by Spanish group Iberdrola, has not reduced standard gas prices since early last year. It revealed a 7.9% rise in earnings last year.

Major energy groups have attracted criticism recently for failing to pass on wholesale price reductions more quickly.

Scottish Power's gas bills will fall by an average of £66 a year.

Raymond Jack, Scottish Power's director of energy retail, said that less than 60% of a customer's bill was based on wholesale costs, with the remainder covering expenses for "investment, government obligations and the delivery of energy to the home".

"The gas we are using today was bought well in advance when prices were much higher."