Quantcast
Menu
Save, make, understand money

Household Bills

SSE increases gas and electricity prices by 8.2%

Tahmina Mannan
Written By:
Tahmina Mannan
Posted:
Updated:
10/10/2013

SSE customers will see an average 8.2% price hike to their gas and electricity bills from 15 November, the energy firm has announced.

The energy giant, one of the ‘Big 6′ in the market, said the increase is necessary due to a rise in the cost of wholesale energy, government levies and operational costs.

The hike is expected to affect 7.3 million customers, with the average annual standard bill rising from £1,354 to £1,465.

However this increase will not affect those customers on SSE’s fixed-price tariffs.

According to MoneySupermarket.com, SSE has increased prices by £227 since October 2012. The energy company has said it will now not raise prices further before autumn 2014.

Between October and December 2012, the “big six” energy companies outlined price rises of between 6% and 10.8%.

Ann Robinson, director of Consumer Policy at uSwitch.com, said: “This is a crippling blow for consumers, who are still reeling from last winter’s price hike. Adding a further £111 to an already sky-high energy bill will leave consumers buckling under the pressure. This will be seen by many as the final nail in the coffin for affordable energy.

“Of course the danger now is that the other big six suppliers will follow suit. This raises the spectre of yet more households forced to cut back on their heating. Last winter almost seven in ten households (69%) went without heating at some point to keep their energy costs down, while over a third (35%) said that cutting back on energy usage was affecting their quality of life or health. This is the grim reality we face as the cost of energy spirals ever higher.

“In the first instance I would appeal to other suppliers not to blindly follow suit, but to consider the impact on their customers first. But, secondly, I would also urge consumers not to sit back and watch energy costs soar. There are two simple steps to protecting yourself from the impact of higher prices: use less energy by making your home more energy efficient, perhaps by taking advantage of the Green Deal, and pay less for the energy you do use.”

There is currently around a £250 difference between the cheapest and most expensive energy tariffs on the market, however this could increase to as much as £349 once SSE’s price hike comes into effect, warned Robinson.

Effect of prices rises over last five years 

Supplier Jul-08 Aug-13 Difference (£) Difference (%)
British Gas £870.40 £1,270.40 £400 45.96%
E.on £861.11 £1,260.52 £399.41 46.38%
EDF Energy £868.13 £1,251.34 £383.21 44.14%
Npower £888.30 £1,257.62 £369.32 41.58%
Scottish Power £849.51 £1,271.19 £421.68 49.64%
SSE £851.81 £1,274.17 £422.36 49.58%
Average     £399.33 46.20%
Source: gocompare.com.Prices based on a medium user (3,300 kWh of electricity and 16,500 kWh of gas per year), with a dual fuel standard tariff, paying by monthly direct debit, averaged across all regions.