Scottish Power to cut prices by 3.3%

Typical dual bills will be reduced by around £42, after criticism the firm failed to pass on reductions agreed with government

Scottish Power said: 'We are committed to delivering the reductions as agreed with the government.' Photograph: David Cheskin/PA

Energy firm Scottish Power is planning to cut its prices by 3.3% following criticism that it had failed to pass on savings from the government's rolling back of green levies that were added to power bills.

The move will reduce typical household gas and electricity dual fuel bills by around £42 and Scottish Power is also expected to pass on a further £12 rebate to all customers for the Warm Home Discount, which the government has said will be funded through general taxation instead of through levies on energy bills.

A spokesman for Scottish Power said: "We are committed to delivering the reductions as agreed with the government and will make an announcement this week."

The tariff cut will only partly reverse increases of 8.5% and 9% for gas and electricity respectively from Scottish Power a month ago.

The expected move follows the a New Year's Day bill reduction by British Gas of 3.2%.