UPDATE 1-Scottish Power increases energy tariffs from August - Reuters

Tue Jun 7, 2011 12:13pm EDT

* Power, gas up from Aug. 1, 2.4 million households affected

* Gas bills to increase by average of 19 pct, power 10 pct

(Adds Energy and Climate Change minister comment)

LONDON, June 7 (Reuters) - British utility Scottish Power (IBE.MC) will increase domestic power and gas tariffs from Aug. 1 in response to rising wholesale energy prices, it said on Tuesday. Gas bills will increase by an average of 19 percent, while power bills will be 10 percent more expensive, a rise that will affect 2.4 million British households.

"Prices for gas and electricity have increased significantly since the end of last year and continuing unrest in global energy markets means future prices are volatile," said Scottish Power's UK Retail Director Raymond Jack.

He said costly government programmes for meeting environmental and social targets and high transmission expenses were also reasons for the tariff rises.

The utility's 70,000 most vulnerable customers can receive a discount on energy bills through a dedicated scheme, Scottish Power said.

The company also said it was investing 4 billion pounds ($6.5 billion) between 2010 and 2012 into renewable energy projects, smart grid technology and modernising power networks.

Britain's Secretary of State for Energy and Climate Change, Chris Huhne, called the tariff increase "disappointing".

"But it underlines why the government is building an escape route from a high fossil fuel future. We need to get off the oil price hook and on to clean, green growth," he said in a statement.

British parliamentarians have accused Britain's six largest utilities of passing on wholesale price gains to customers more quickly than falling prices. [ID:nLDE74A0LD] (Reporting by Karolin Schaps, editing by Anthony Barker)