One of the UK’s largest energy suppliers, SSE, has today announced it is freezing prices on its standard tariff until January 2016. SSE estimates that around eight million customers in Great Britain will benefit from this move.
SSE claims that this move will provide ‘peace of mind’ to people who are worried about rising energy prices.
Although we welcome SSE’s actions to freeze energy prices, there are still a number of cheaper tariffs on the market. Find the best deal for you by comparing energy prices with Which? Switch.
Which? welcomes energy price freeze
The announcement from SSE is a positive step and should reassure many customers who were expecting large price rises over the next couple of years.
In February this year, Which? found that more than three-quarters of people are worried about the cost of energy. You can read more about people’s energy bill worries on our consumer insight tracker.
Which? executive director, Richard Lloyd, said: ‘This is a bold move in an energy market badly in need of change and we welcome the certainty this announcement brings to hard-pressed SSE customers. Millions of households can be confident that their energy bills won’t be hit again by inflation-busting price rises in the months to come’.
Separating wholesale and retail energy businesses
SSE also announced its plans to legally separate its retail and wholesale businesses by March 2015, as a method of improving transparency. This will make it clearer where the company’s profit is coming from.
Mr Lloyd added: ‘By responding positively to our campaign for a separation of retail and generation businesses, SSE has also shown the industry itself can take action to improve transparency’.
Which? is calling for a full competition inquiry to ensure the whole energy market is opened up to more competitive pressure, to keep costs in check and give all consumers confidence they are paying a fair price.
Cheaper energy tariffs available
As of today, the cheapest tariffs are:
- First Utility – iSave Fixed May 2015: £1,014.74 (fixed)
- Ovo Energy – Cheaper Energy Fixed: £1,028.48 (fixed)
- Spark Energy – Direct Debit Advance 4: £1,070.24 (variable)
- Ovo Energy – Greener Energy Fixed (Online): £1,071.01 (fixed)
- Woodland Trust Energy – New Energy Fixed: £1,074.74 (fixed)
- Ovo Energy – Better Energy Fixed: £1,074.74 (fixed)
All of the above prices are for a dual fuel, monthly direct debit customer with average usage. SSE’s standard tariff with paperless billing is currently £1,174.24, which is £159.50 more expensive than the cheapest tariff.