SSE will raise its average energy prices by 9% on gas and 9% on electricity from the 15th October this year. It is the biggest single increase the supplier has implemented since 2008.
The move will see £119 added onto the average dual fuel bill for an SSE customer. The average household bill for a dual fuel SSE customer will now go up from £1,235 to £1,354 a year.
The move will affect customers with Atlantic, Scottish Hydro, Southern Electric, SWALEC, of whom SSE is the parent company.
SSE price rises
SSE increased its prices in December 2010 and September 2011 by 21.9% or £227 in total. They cut them again in March this year – by just 2.4% or £30 – in a turbulent year for energy prices.
By November 2011, all the Big Six suppliers had increased their prices twice in little more than a year. All announced a single digit price cut on either gas or electricity (but not both) in January 2012.
Earlier in the year SSE had pledged not to raise its prices before October. This price rise will take affect just two weeks into the month. However, SSE has renewed its promise to freeze prices – this time until at least the second half of 2013.
In a statement, the energy supplier said:
“SSE has stood by its pledge to hold its household energy prices at existing levels until at least October 2012.
“Unfortunately, sustained increases in the cost of using the electricity and gas networks, the costs of mandatory government-sponsored schemes that are passed on to customers and the price SSE has paid for energy in the wholesale markets for this coming winter now need to be reflected in household gas and electricity prices.”
The energy supplier blamed increased distribution costs and the cost of Carbon Emissions Reduction Target (CERT) and the Warm Homes Discount as well as increases in the cost of wholesale gas.
– It argues that distribution costs are up by 9% (this makes up about a quarter of your energy bill).
– CERT and Warm Homes Discounts costs are 30% higher than a year ago (this makes up around 9% of your energy bills)
– That wholesale gas costs this winter are predicted to be 14% higher than last year.
Responding to the announcement, Ann Robinson, Director of Consumer Policy at uSwitch, sais: “This is a serious blow for cash-strapped consumers. With winter on its way households will now have to brace themselves for higher fuel prices too.
“Last winter, over eight in ten households (83%) rationed their energy use because of cost – a round of price hikes this winter will condemn many more to this misery too.
“It’s important that consumers now take action to protect themselves. There are two key steps to keeping a lid on your energy bills – use less energy by making your home more energy efficient and move to a more competitive energy deal.
“There’s good news here on both fronts, with many free or heavily-subsidised insulation offers on the market and some extremely competitive ‘best buy’ energy deals too. Some of these plans are also fixed price so offer certainty and security too.
“The key thing is to take action – the difference between the cheapest energy plan in the market and the most expensive is £315 – this is a substantial saving and could make a real difference for those who are worried or struggling with bills.”
Average household energy bills:
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Source: uSwitch.com – Based on a medium user consuming 3,300 kWh of electricity and 16,500 kWh of gas with bill sizes averaged across all regions.
I’m with SSE! Help!
Don’t worry, you have plenty of time to take action.
1) Compare energy suppliers. Find out how to find the cheapest energy supplier.
2) See how other energy suppliers have changed their prices: energy suppliers prices.
3) Find out more about how your bill breaks down with our energy bill breakdown.
SSE in their own words: Why we raised our prices