SSE hikes energy prices by 18%
Scottish & Southern Energy (SSE) today announced price hikes of 11% on electricity and 18% on gas – becoming the third of the ‘big six’ suppliers to increase prices.
According to SSE, the average dual fuel bill will increase to £1,265 from the current level of £1,094 when the new prices come into effect on 14 September.
The move, which had been widely anticipated, will impact around 5.2 million household electricity customers and 3.6 million gas customers.
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Commenting on the news, Mike O'Connor, Chief Executive of Consumer Focus, said: ‘Knowing another price rise was round the corner will not soften its impact for customers. This increase heaps more pressure onto already cash-strapped consumers and will tip many thousands more people into fuel poverty.
SSE’s announcement comes weeks after British Gas and ScottishPower revealed similar price hikes – each citing rising wholesale costs as the reason for the increase. In a statement, SSE said: ‘Events such as the earthquake and tsunami in Japan and political upheaval in the Middle East, and longer-term trends such as the fast-increasing energy needs of the Asian economies, have contributed to the rise in wholesale energy prices.’
While SSE’s energy costs will rise in September, the company has vowed not to increase prices again before August 2012.
What you can do about it
Under current legislation, energy companies must give customers at least 30 days’ notice of any price increase. With the flurry of recent hikes, you will need to act quickly to secure the cheapest possible deal on your gas and electricity.
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If you would be unable to cope financially with a sudden increase in your energy bills, it could be an ideal time to switch to a competitive fixed rate tariff which will protect you against future price hikes over a pre-determined period – typically one to two years.
Although fixed rate tariffs tend to be around £70 a year more expensive, these deals could be one of the safest options if you’re concerned about your utilities bills.
Remember, suppliers may begin to withdraw their best fixed rate deals if wholesale prices continue to soar.
Best fixed plans available
| Supplier | Product | Prices fixed until | Average annual dual fuel bill* |
| EDF Energy | Fixed S@ver 2 | 30 September 2012 | £1,009 |
| OVO Energy | New Energy Fixed | 12 months from sign up | £1,050 |
| EDF Energy | Fixed Price 2014 | 31 March 2014 | £1,085 |
Despite the security of a fixed-rate, you could face hefty exit fees if you wish to leave the tariff before the agreed term.
Alternatively, you could opt for a capped tariff in which you will be subject to fluctuations in energy prices, but only up to a certain point.
See if you could save on your energy bills
*Annual bills based on an average medium user (16,500 kWh gas and 3,300 kWh electricity) averaged across all regions, paying by monthly direct debit.
Prices correct as 21/07/2011
**This material is for information purposes only and should not be considered financial advice. We strongly encourage our readers not to rely solely on this content, but to seek independent advice when making financial decisions.**
