Energy provider price cuts ‘could help debt management’

The announcement that Scottish Power is to reduce its energy tariffs could help consumers with debt management, it has been suggested.

According to price comparison website moneysupermarket.com, the utility providers’ decision to cut gas and electricity prices by an average of 11 and 2.6 per cent respectively could help those with secured loan repayments.

However, head of utilities Paul Schofield warned that those who choose to pay by cash or with a cheque will only witness a five per cent fall in gas prices with electricity bills set to stay the same.

Mr Schofield added that as Britain’s six largest energy suppliers have all announced price cuts, those looking to manage their debts should look to change to a more competitive provider.

He said: "We anticipate a flurry of activity from customers keen to recoup some of their winter losses and plenty more price competition between suppliers."

Last week, Simplyswitch.com reported that BT’s decision to increase late payment charges could cause some of the most financially vulnerable Britons to struggle with loan repayments.

Interfinancial providing you with breaking debt management news.