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New cheap energy deal doesn’t stay cheap

SSE's new energy tariff features £103 price hike
Energy supplier profits rise

Sign up to SSE’s new energy tariff and you’ll see your bills jump halfway through your contract, leaving you with higher bills in 2014.

SSE’s Discount Energy Bonus April 2015 tariff offers customers the equivalent of a discount of 11% off standard prices until 31 March 2014. 

However, from 1 April 2014 to 1 April 2015 the discount will change, and prices will be just 2% below standard prices. 

While the offer is attractive now (it is currently one of the cheapest energy tariffs on the market), as the prices are linked to variable standard prices, they can go up or down and consumers will be in line for a guaranteed price rise in 14 months’ time.

Visit our SSE review to find out what its customers think about it and how its prices have changed over time. 

Energy price rise

For the average customer who signs up to the Discount Energy Bonus April 2015 tariff, the price change will mean a £103-a-year increase halfway through their two-year contract. 

Customers will have to pay £50 if they want to leave the tariff before 1 April 2014, but after that date the exit fee will be waived.

If you are looking to switch to a better energy tariff, it’s worth looking at alternative fixed-price deals if you want to be more secure in your monthly energy spend. You can compare gas and electricity prices for your household using our independent comparison tool at Which? Switch.

Confusing energy tariffs

Which? has been putting pressure on the government and suppliers to simplify energy tariffs to make it easier for consumers to get the best deal. 

We recently published our first energy report, ‘The Imbalance of Power’, which calls for radical changes in the energy market. 

These changes include the introduction of a single unit price, which we believe would lead to consumers getting a fairer deal from energy companies.

More on this…

  • Find out which are the best energy companies
  • Looking to save money? See our energy saving tips
  • Find out more about our Affordable Energy Campaign
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