All energy suppliers in the UK, including SSE, are subject to Ofgem's energy price cap. The cap sets the maximum rates energy suppliers can charge for their standard variable or default tariffs. Unlike fixed tariffs, the price of these plans can go up or down and they tend to be the most expensive types of plan of offer.
Due to energy wholesale prices increasing at the end of 2021, energy suppliers were having to pay much more for energy than previously. Ofgem therefore raised the energy price cap level to its highest ever level of £1,971 to help them cover their costs.
SSE increased its standard variable tariff rates from £1,276.49 to £1,969.71 - just below the cap rate.
At the last price cap announcement in August 2021, Ofgem announced it would be increasing the level of the price cap by 12% to a maximum of £1,277 per year for standard variable tariff customers. This was the first time the cap had been raised twice in a year, and marked the highest point to date that it had reached. The new prices came into effect in October 2021.
Looking back at February 2021, Ofgem had previously announced it would increase the level of the price cap by 9% to a maximum of £1,138 per year for average dual fuel use. In reaction to the new price cap rate, SSE announced a 9% price rise for customers on its standard variable tariff (SSE Standard), which came into effect in April 2021.
SSE's price rises will only affect customers on the SSE Standard tariff. If you're on a fixed plan from SSE or any other energy supplier, the rate you pay per unit of energy will remain fixed until your plan ends. After this, it's likely your supplier will automatically place you on its standard variable tariff, which could mean your bills will go up.
In September 2020, SSE announced it would be reducing the average cost of its standard variable tariffs by 7% in line with Ofgem's revised energy price cap.
The average bill for customers on SSE's standard tariff fell by £83 to an average of £1,042 per year - the maximum cost allowed under the new price cap rate. The price change came into effect in October 2020.
In February 2020, SSE announced a 1% reduction in the cost of its standard variable tariff, also in line with a reduction in the price cap rate.
In August 2019, SSE announced a 6% price decrease for its two million standard variable tariff customers, also as a result of a decrease in the price cap level.
In February 2019 SSE announced a 10% price rise which came into effect on 1 April.
For more details on this supplier, including price history, customer satisfaction scores and where their average bill costs rank amongst the big six, view the SSE page.
All customers on SSE's Standard tariff will be impacted by this price rise. If you're on this plan, you should start to see higher energy bills from April 2022.
If you're fortunate enough to be on a fixed plan from SSE, your rates will stay the same for the rest of your energy contract. But remember that you'll automatically be placed on a standard variable tariff when your fixed plan end, and this is likely to be more expensive.
After the new price cap rates were announced in February, many energy suppliers reacted by announcing price rises to come into effect in April 2022.
You can read about previous price changes from the rest of the big six below:
The energy price cap is reviewed twice a year, in February and August (to come into force in April and October). Energy prices on standard variable tariffs rose by an average of £694 in April, and will probably rise further in October. Ofgem will announce the new price cap level in August.
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