By Lana Clements

The last of the Big Six energy firms, Scottish Power, has finally announced a price drop of 5% to gas prices effective from 27 February. Over the last week, its rivals have all announced price cuts, but critics say it won't cancel out the successive increases that have hit customers in the last year.

The cost of energy has risen by an average £224 in just over 12 months, but the week's price cuts will only amount to a drop of £34, according to uSwitch.com. Price rises added a total £2.24 billion collectively, but cuts take off £340 million - leaving a £1.9 billion "hole in consumer pockets", says the site.

Before Scottish Power, E.ON said electricity bills will be cut by 6% across its standard tariff affecting 3.7 million customers, again, from 27 February.

Last week EDF started off slashing prices with a 5% drop on gas from 7 February, it was followed by British Gas, which announced a 5% drop on electricity with immediate effect. Scottish and Southern Energy and NPower knocked 3.8% and 5% off gas prices respectively.

Consumers are now being urged to switch products in order to take advantage of the best prices available. Comparison site moneysupermarket says there is a saving of £2.5 billion to be made across the country. Some of the best value products on the market for customers are online tariffs, which allow monthly payments and self-input of meter readings.

Clare Francis, site editor at moneysupermarket, comments: "In the days before the energy market opened up to competition, British Gas provided gas to all energy regions while electricity was provided by one regional supplier, for example London Energy in London which now falls under EDF Energy.

"Despite the greater choice available to consumers for both gas and electricity, the majority of UK households remain with the providers who traditionally provide their gas and electricity and are therefore over paying for their energy."