Changes to standard GB domestic energy prices; dual fuel bill to increase by 6.9%
Three and a half years since its last price rise, energy supplier SSE has taken the difficult decision to increase standard domestic electricity prices from 28 April 2017, but confirmed it will hold gas prices at their current levels.
- SSE to increase standard GB domestic electricity prices but will hold gas prices at their current level
- Price change equates to a £73 or an average 6.9% rise for a typical dual fuel customer, as a result of an average 14.9% electricity price increase
- Electricity prices will increase from 28 April 2017
- Dual fuel customers will still pay less than they did at the end of 2013 due to three reductions in gas prices and one electricity price cut since then
- Rise reflects the increasing cost of supplying electricity
- SSE will establish a £5m fund, providing targeted financial assistance to minimise the impact on vulnerable customers
The 6.9%1 dual fuel increase will mean a typical domestic customer will pay on average £731 a year more, which equates to around £1.40 per week, as a result of an average 14.9%2 increase in electricity prices. The new typical dual fuel bill of £1,142 per year remains cheaper than in November 2013 and gas prices remain the cheapest they’ve been since October 2012, thanks to three price cuts in the intervening period. This change to electricity prices will affect around 2.8 million SSE customers in Great Britain.
The price change reflects the increasing cost of supplying electricity, and specifically higher costs associated with delivering vital government programmes designed to upgrade Britain’s ageing energy infrastructure and help the country move towards a low carbon future. These costs are levied predominantly against electricity customers.
SSE has sought to protect customers as much as possible and was the first major supplier to commit to holding prices until at least April 2017; it has resisted pressure on gas prices, and continues to bear down on its own controllable costs in order to minimise the impact of increasing costs on customers.
For those customers looking for security over their longer-term energy costs, SSE is now offering a fixed-price tariff for three years, providing peace of mind all the way to 2020.
SSE takes its responsibility as an essential services provider seriously and recognises the impact higher energy costs can have on customers, particularly the most vulnerable. With that in mind it has today launched a £5million fund to provide additional financial support for those who need it most, particularly those who rely on electricity for their heating.
Will Morris, Managing Director for Retail said: “We deeply regret having to raise electricity prices. This is the first increase since 2013 and we’ve worked hard to keep them down for as long as possible by cutting our own costs, putting in place a winter price freeze and holding gas prices, but we have seen significant increases in electricity costs which are outside our control. Without an increase we would have been supplying electricity to domestic customers at a loss.
“We know that any increase can add extra pressure on customers’ bills so we’re launching a £5million fund to provide assistance to those who are struggling with their bills, in addition to the existing £46m that SSE already spends helping customers through the Warm Home Discount. Anyone worried should contact our advisors so we can ensure they benefit from any support available to them.”