SSE has held out the longest of the Big Six energy companies before raising its prices. But today it has announced an increase that’s the biggest of the lot.
Around 2.36 million customers on SSE’s standard tariff will join the 8 million or more Big Six customers who are already seeing their energy bills increasing this summer.
Customers on SSE’s standard variable tariff will see their electricity price increase by 7.7% and their gas price increase by 5.7% from 11 July 2018. This will add £76 to dual-fuel energy customers’ bills per year on average.
Are you an SSE customer? Read on to find out whether you’re affected. Or use Which? Switch, our independent energy comparison site, to compare gas and electricity prices to see if you could save money.
I’m an SSE customer: will my bills increase?
If you are on a variable tariff with SSE, the price you pay will increase. If you buy both gas and electricity from SSE, the combined increase is 6.7%.
Variable tariffs have no end date. SSE’s standard variable tariff is simply called Standard.
- If you’re on a fixed tariff, such as its Currys PC World or Love2Shop Fix & Shop tariffs, the price you pay for each unit of energy you use will not change during the term of your contract.
- SSE customers on its safeguard tariff or who have prepayment meters are not affected.
SSE is also scrapping its paperless billing discount – worth £12 per year for dual-fuel customers – from 11 July 2018.
Why is SSE raising energy prices?
The company said the price rise is the result of increasing costs ‘largely outside of our control’.
Stephen Forces, its chief commercial officer, said: ‘We deeply regret having to raise prices and have worked hard to withstand the increasing costs.
‘The cost of supplying energy is increasing and this ultimately impacts the prices we are able to offer customers.’
Last week SSE announced a loss of 430,000 customers last year, which hit its profits.
Meanwhile, SSE’s planned merger with Npower is under investigation by the Competition and Markets Authority. The merger was referred for a second in-depth investigation after the initial investigation raised concerns about a risk of an adverse effect on competition.
British Gas, EDF Energy, Npower and Scottish Power price rises
SSE is the latest in a long line of companies to announce price rises in early summer this year. British Gas’s 5.5% price rise came into effect yesterday, and Scottish Power’s price rise (also 5.5% on average) will add to customers’ bills from tomorrow.
Npower’s price rise – from 17 June 2018 – will add the second-largest amount to customers’ bills (£64 on average per year), although is a smaller percentage increase overall.
EDF Energy announced the smallest increase of the Big Six: a 1.5% rise on its electricity prices from 7 June.
Some medium-size and smaller energy firms have also raised their prices.
Which? response to SSE price rise
Alex Neill, Which? Managing Director of Home Products and Services, said:
‘This latest price hike is another slap in the face for energy customers who are already feeling the pinch and can’t see any real difference in the service they’re receiving.
‘We would urge the nine million customers affected by the Big Six price hikes to take back the power by switching to a better deal, as they could save over £400 a year.’
Which? energy pricing research
Prices are based on a dual-fuel tariff available in all regions of England, Scotland and Wales for an average user (using Ofgem averages of 3,100kWh of electricity and 12,000kWh of gas per year), paying by monthly direct debit, with paperless bills. Data is from Energylinx. Prices given are averages across regions, rounded to the nearest whole pound and correct on 29 May 2018.