Scottish & Southern Energy raise gas prices by 18%
Scottish & Southern Energy (SSE) has followed the lead of Scottish Power and British Gas and become the latest of the big six energy suppliers to raise gas and electricity prices by more than ten per cent.
SSE will raise electricity prices by an average of 11 per cent and gas prices by an average of 18 per cent. The move will take effect from September 14th and will affect most of SSE’s 5.2 million electricity customers and 3.6 million gas customers in the UK.
SSE warned in May that the rising cost of wholesale gas was going to mean that it would have to raise prices, despite a rise in gas prices just seven months ago in December 2010. This is the first time the company has raised electricity prices since August 2008.
The company states on its website that: “SSE will not implement another increase in the price of household electricity or gas before 1 August 2012 at the earliest.”
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.”
The price rises come despite the fact that SSE’s pre-tax profits increased by 29 per cent to £2.1 billion last year.
Last week a report by consumer group Consumer Focus revealed that more than five million households in the UK spent more than ten per cent of their income on energy bills, meaning they are classified as living in fuel poverty and it also said that if all six of the big energy companies introduce double digit price rises then nearly six and a half million households will enter fuel poverty. SSE are the third of the big six to raise prices for both gas and electricity by more than ten per cent.
Ann Robinson, Director of Consumer Policy at uSwitch.com, says: "Despite household energy bills having rocketed by almost £500 or 71% in just over 5 years, consumers are still being asked to pay more. Household finances are creaking and groaning under the weight of price hikes, but the biggest concern in this has to be the impact on fuel poverty.
"Already almost a quarter of households can be classed as fuel poor and a string of substantial price increases in the space of a year will be pushing many more into this pit.”
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