Company blames higher costs
SSE hikes gas and electricity by inflation-busting 6.7%
SSE is facing higher costs
Energy giant SSE is raising prices for gas and electricity customers by 6.7%, almost three times the rate of inflation.
SSE Energy Services said it had taken the “difficult decision” because of rising costs outside its control, including the need to meet government emissions targets.
The increase in bills for dual fuel customers will be effective from 11 July. The rise equates to an increase of 5.7% for gas and 7.7% for electricity. It will add £1.50 a week to bills for dual fuel customers.
Those on fixed-price tariffs, have a prepayment meter, or are on the vulnerable customer safeguard tariff will not be affected.
SSE Energy Services will also be removing its £6 per fuel, per year paperless billing discount from the same date.
Stephen Forbes, chief commercial officer of SSE Energy Services, said: “We deeply regret having to raise prices and have worked hard to withstand the increasing costs that are largely outside our control by reducing our own internal costs.
“However, as we’ve seen with recent adjustments to Ofgem’s price caps, the cost of supplying energy is increasing and this ultimately impacts the prices we’re able to offer customers.
“I’d urge any customer concerned about their energy costs to contact our customer service teams or visit our website as there’s plenty of support available, including around £50m of financial assistance available through the Warm Home Discount scheme.”
The company said that increasing energy prices is always a “last resort”.
However, it said sustained increases in the cost of supplying energy, principally from higher wholesale energy prices and the cost of delivering government policy initiatives designed to modernise and decarbonise Britain’s energy system, must eventually be reflected in prices.
It said policies such as those that support low-carbon forms of electricity generation and the national roll-out of smart meters offer benefits for customers in the long term, but require significant up-front investments which are funded through energy bills.
SSE Energy Services continues to believe that these policies should instead be funded more fairly through means-tested general taxation.