SSE promises to reduce bills after government policy changes

2nd Dec 2013 08:13

- Government announces changes to ECO and WHD schemes- SSE pledges to pass on savings to customersUtilities group SSE has said that following proposals to reduce future costs associated with the government's Energy Company Obligation (ECO), it will pass on any resultant savings to customers before the year-end.SSE said that the changes should "remove a significant amount of upwards pressure" from energy bills.The ECO is an energy efficiency programme that was introduced at the beginning of the year, replacing the Carbon Emissions Reduction Target scheme and the Community Energy Saving Programme. It places legal obligations on large energy suppliers to deliver energy efficiency measures to household customers.The government announced changes to the ECO over the weekend as well as the Warm Homes Discount (WHD) scheme - obligations that are paid for through energy bills - to offset the rising cost of living."On the basis of today's announcement and the planned consultation, SSE plans to reduce its household energy prices before the end of its financial year," the firm said.The company said that impact of the proposed changes should lead to a typical dual-fuel customer benefitting by around 4%, equal to a saving of £50.SSE is extending its current autumn 2014 price cap at the new lower levels to spring 2015, as long as there are no significant increases in wholesale energy costs, network costs or new policy-related costs."We promised our customers that they would benefit from any cost savings and although there is some detail still to be worked out, we are able to commit to lowering our prices," said William Morris, the Managing Director SSE's Retail division."We continue to believe that policy costs should be paid through general taxation, not energy bills. The Warm Homes Discount changes are therefore a step in the right direction," he said.SSE's share price was 0.28% higher at 1,330.72p in early trading on Monday.BC