ScottishPower has become the last of the Big Six energy suppliers to cut energy prices by announcing it will cut gas prices by 5%.

ScottishPower has announced it will cut its gas prices by 5% from 27 February. The energy company says this will cut the bills for around 1.4 million domestic gas customers.

ScottishPower is the last of the Big Six energy providers to cut energy prices. So far British Gas and E.ON have cut electricity prices while npower, EDF Energy and SSE have cut gas prices.

Domestic energy prices differ from business gas prices and electric tariffs because the majority of energy for domestic supply is bought in advance. Business energy tends to be bought as and when it’s needed hence the difference in prices and why business gas tariffs and electricity prices vary from week to week and even day to day.

ScottishPower said the cut of 5% would reduce the average ScottishPower dual fuel and gas only monthly Direct Debit by £36.

ScottishPower’s CEO of Energy Retail and Generation, Neil Clitheroe, said “Our customers want competitive prices from a responsible supplier. We understand that household budgets are tight in these tough economic times and with this in mind, we are pleased to be able to pass on lower prices and help our customers when we can”.

He added “In October, we pledged not to increase standard prices for gas and electricity over the winter months, extending until at least 1st April 2012.   Today’s reduction is being made as part of our commitment to continually review our tariffs”.

He said that the company was able to cut prices because of a small fall in wholesale energy prices. However, he emphasised that the global demand for energy is increasing faster than supply and as a result we will undoubtedly see higher costs in the long-term.

He concluded by saying “we would, as always, encourage all of our customers to contact us to make sure they are on the best tariff for their circumstances”.