Energy firm set to hike bills

Post by George Dixon on 22nd August 2012 in General industry

Energy firm set to hike bills

Utilities supplier Scottish and Southern Energy (SSE) has announced that it plans to increase prices by up to nine per cent from October. 

Around 8.4m householders are expected to be affected by the price hike, adding a further £119 to the cost of the average SSE dual energy bill. The company says rising wholesale prices – up by around 14 per cent since last winter – have left it with no alternative. 

“As a result of today’s increase by SSE, I expect a ‘domino effect’ in the market as the other members of the Big Six providers follow suit to hike prices,” said Scott Byrom, spokesman for price comparison website Moneysupermarket.com. 

SSE also says that the cost of distributing energy supplies - determined by industry watchdog Ofgem – has risen by nine per cent year-on-year, with environmental and social initiative costs climbing by 30 per cent. 

Earlier this week, Labour MP and former shadow Welsh secretary Peter Hain told BBC Wales that he had a “productive” meeting with prime minister David Cameron over plans to construct a large tidal energy array in the Severn Estuary.

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