Energy supplier raises fuel bills
Scottish and Southern Energy became the last of the UK's major energy suppliers to raise its prices with a 14.2 per cent hike in electricity 15.8 per cent increase in gas.
Scottish and Southern Energy became the last of the UK's major energy suppliers to raise its prices with a 14.2 per cent hike in electricity 15.8 per cent increase in gas.
The company blamed higher wholesale prices for the move. According to Scottish & Southern Energy (SSE), electricity costs have risen 90 per cent and gas 100 per cent from February 2007.
Bills for the company's 8.5 million existing customers will rise from April 1st.
Alistair Phillips-Davies, energy supply director of SSE, said: "Energy supply in the UK is changing dramatically, with companies having to operate in volatile markets, which reflect depletion of North Sea oil and gas fields, soaring global demand for all types of energy and over $100 a barrel for oil. Wholesale energy prices have been stubbornly high.
"These pressures are compounded by the rising transmission, distribution and environmental costs which suppliers have to meet.
"You cannot resist indefinitely the impact of these issues and I am sorry that all of this has culminated in the price rises we are announcing today."
E.ON followed British Gas and N.Power in raising its energy prices in February. SSE said it withheld price increases until April, when temperatures rise and customers use less gas.
The company said it is maintaining its social tariff, which gives a 20 per cent reduction from an energy bill compared with standard tariffs.
Price comparison site uSwitch.com estimated the price hike will take the annual fuel bill for an SSE customer to £1,006.
Tim Wolfenden from uSwitch, said: "As the last of the big six energy suppliers to increase its prices, SSE should be applauded for ensuring its customers were not impacted by price increases over the winter months.
"Unfortunately, it should come as no surprise to their customers that bills are increasing as where others lead, it was sure to follow."
Recent figures show higher energy bills – and the fact prices have risen suddenly instead of over a few months – are responsible for pushing inflation up to 2.5 per cent.