SSE hikes energy tariffs by 8.2 per cent due to rising costs

10th Oct 2013 07:09

Household utility giant SSE has revealed that electricity and gas tariffs are to rise by an average 8.2 per cent from November, meaning that typical dual-fuel customers will be paying an extra two pounds per week.The company said that raising prices "is the last thing [it] wants to do" and remains committed to protecting customers as much as possible from increasing costs. It has therefore pledged not to raise prices again before autumn 2014 at the earliest "and is urging any customer worried about how the changes will impact them to get in touch to discuss what help is available to them".The company has around 4.4m household electricity customers in Britain, along with 2.9m gas customers, excluding those on fixed-price tariffs.SSE said the changes in household energy tariffs, which will take effect on November 15th, are a result of a combination of the increased cost of buying wholesale energy (which has risen 4% for a typical dual-fuel customer), paying to use upgraded networks to deliver energy to customers (up 10%), and government-imposed levies on energy bills (up 13%).The utility provider last increased electricity and gas prices in October 2012 and had promised not to hike tariffs again until at least July 2013. "Despite external costs continuing to rise in that time, SSE has been able to hold its prices for several months longer than that," it said.The company reported last month that its Retail segment was loss-making during the first half to September 30th and that rising costs could not be absorbed beyond November 15th.Managing Director of Retail, Will Morris, said: "We're sorry we have to do this. We've done as much as we could to keep prices down, but the reality is that buying wholesale energy in global markets, delivering it to customers' homes, and government-imposed levies collected through bills - endorsed by all the major parties - all cost more than they did last year."85% of a typical energy bill is made up of costs outside our direct control and these costs have increased. So far this year we have made a loss from supplying energy as a result of the higher costs we have been facing and continue to face."BC