Gas and electricity bills for SSE customers will shoot up by 9% from October so now is the time to act if you want to avoid these extra costs.
Gas and electricity company SSE has confirmed it will be pushing its prices up by 9% from 15th October, adding an extra £102 to an average household bill.
It says the increase is needed because of rising costs in the energy wholesale market, a hike in the price it has to pay for using gas and electricity networks and extra money it's paid out towards mandatory Government-sponsored schemes.
Who will be affected?
The rise is expected to affect around five million electricity customers and 3.4 million gas customers and the company says the rise is "unavoidable".
An average standard duel fuel bill from SSE is currently £1,172 and will rise to £1,274 when the increases are implemented. Customers will be informed via post about the changes by 14th September.
Price pledge lasted until now
Today’s announcement is likely to anger customers as last year SSE pledged to cap its energy prices for ‘as long as possible’ and until at least August 2012. It then extended the cap until October but now says it can no longer absorb rising costs.
After the rise on 15th October there will be another cap put in place which will las "until at least the second half of 2013", although no exact date has been given.
Price rises across the market
Last year all the ‘Big Six’ providers (SSE, Scottish Power, British Gas, npower, E.ON and EDF) announced price hikes because of rising wholesale prices. This year they all reduced their prices, but not by as much as they rose previously. SSE, for example, pushed its gas prices up 18% and electricity 11% a year ago. It then knocked gas prices down by 4.5% in January, which meant customers were losing out overall.
The cheapest tariffs
There is little you can do about rising prices from the energy providers but by keeping an eye on the market you can always switch to a cheaper company. First Utility, for example, has an average fixed-rate deal until 31st December 2013 of £1,040 a year - £234 cheaper than the increased rate for SSE customers.
There are many ways to save money on your energy bills and switching is one of the most important. It’s a quick and easy process and our step-by-step guide will show you how.
To give you an idea of just how much you could save, here are the five cheapest deals around right now.
|
|
Supplier |
Tariff |
Average Cost |
Average Saving* |
Notes |
|
1 |
First Utility |
£1,040 |
£270 |
Fixed until 31st December 2013 |
|
|
2 |
Scottish Power |
£1,050 |
£260 |
Guaranteed discount until 31st October 2013. |
|
|
3 |
Scottish Power |
£1,052 |
£258 |
Fixed until 31st Oct 2013. |
|
|
4 |
EDF |
£1,058 |
£252 |
Fixed until 30th April 2014 |
|
|
5 |
npower |
£1,064 |
£246 |
Rates guaranteed to be 3% cheaper than npower standard until 31st Oct 2013 |
* based on average dual fuel tariff costing £1,310 (Source: OFGEM 1 Aug 2012). All costs are for a yearly average usage dual fuel household paying by monthly direct debit. Average usage defined by Ofgem as 16,500 kWh p.a. of gas and 3,300 kWh p.a. of electricity.
Will you be affected by the energy price hike? Let us know in the Comments box below.
Compare gas and electricity suppliers with our easy-to-use service
More on energy bills
Don't be pushed into over-priced home insulation
How to complain about your energy supplier