As Utility Exchange predicted another of the “big six” energy providers, Scottish & Southern Energy (SSE) has announced it is raising gas and electricity prices.
SSE becomes the third provider to announce huge price increases after ScottishPower and British Gas led the way. SSE will increase gas prices by an average of 18% and electricity prices by 11% from September 14. The price rise will mean the average dual fuel bill will increase from £1094 to £1265.
SSE has blamed the high wholesale gas prices for its decision to increase gas and electricity prices. It added that the price increases also reflected the higher costs involved in using energy networks and the cost of social and environmental schemes. On the bright side, SSE said it won’t increase prices again until August 1 2012.
The chief executive of Scottish & Southern, Ian Marchant, said “I am sorry that we have had to announce an increase in household energy prices at a time when many people’s budgets are under strain, but the upward pressures on prices have become too great”.
SSE last raised prices in December and since then the wholesale price of electricity has risen by 23% while the wholesale cost of gas has gone up by 40%. Not only that but consumption has fallen since April as a result of the warmer weather (and increased prices?) and as a result households are using 2.9% less electricity and 5.8% less gas.
Utility Exchange reported earlier this month that British Gas was to increase its prices from August and warned that it was only a matter of time before the other energy providers followed suit and increased gas and electricity prices. While these price rises relate to domestic users at the moment it’s only a matter of time before business gas prices and business electricity prices go up. Therefore if your business energy contract is due for renewal don’t get rolled over into an expensive contract – compare business gas and business electricity prices to ensure you’re on the correct tariff.