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| SSE to raise gas and electricity prices by 8.2% | SSE to raise gas and electricity prices by 8.2% |
| (35 minutes later) | |
| SSE customers will see an average 8.2% rise in gas and electricity prices from 15 November, the company has announced. | SSE customers will see an average 8.2% rise in gas and electricity prices from 15 November, the company has announced. |
| SSE said the increase reflected the higher costs of buying wholesale energy and paying to deliver it to customers' homes, plus government levies. | SSE said the increase reflected the higher costs of buying wholesale energy and paying to deliver it to customers' homes, plus government levies. |
| The price rises will affect about 4.4 million electricity customers and 2.9 million gas customers, not including those on fixed-price tariffs. | The price rises will affect about 4.4 million electricity customers and 2.9 million gas customers, not including those on fixed-price tariffs. |
| SSE's average annual standard dual-fuel energy bill will rise to £1,224. | SSE's average annual standard dual-fuel energy bill will rise to £1,224. |
| The company said that 8.2% was an average rise. Customers in the North of England and central Scotland would see the smallest increase, of 7%, in their dual fuel price. Customers in the South East of England would see the biggest, up 9.7%. | |
| SSE last increased its prices a year ago. It has now pledged not to raise them again before autumn 2014. | SSE last increased its prices a year ago. It has now pledged not to raise them again before autumn 2014. |
| The announcement comes about a year after the last set of gas and electricity price rises. | The announcement comes about a year after the last set of gas and electricity price rises. |
| Between October and December 2012, the "big six" energy companies outlined price rises of between 6% and 10.8%. | Between October and December 2012, the "big six" energy companies outlined price rises of between 6% and 10.8%. |
| At that time, the companies blamed rising wholesale prices, the cost of transporting energy to homes, and the increasing cost of government social schemes for the increases. | At that time, the companies blamed rising wholesale prices, the cost of transporting energy to homes, and the increasing cost of government social schemes for the increases. |
| Volatile margins | Volatile margins |
| "We're sorry we have to do this," said SSE's Will Morris. | "We're sorry we have to do this," said SSE's Will Morris. |
| "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." | "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." |
| SSE said that for a typical dual-fuel customer, wholesale energy prices had gone up 4%, paying to use delivery networks was 10% more expensive, and government levies were 13% higher. | SSE said that for a typical dual-fuel customer, wholesale energy prices had gone up 4%, paying to use delivery networks was 10% more expensive, and government levies were 13% higher. |
| About two-thirds of a household fuel bill goes on the cost of wholesale energy, the cost of running an energy sales business, and on the companies' profits. | About two-thirds of a household fuel bill goes on the cost of wholesale energy, the cost of running an energy sales business, and on the companies' profits. |
| Up to 11% goes on government programmes to save energy, reduce emissions and tackle climate change, according to regulator Ofcom. | Up to 11% goes on government programmes to save energy, reduce emissions and tackle climate change, according to regulator Ofcom. |
| The latest calculations from the regulator found that the average profit margin made by an energy supplier on an average £1,315 bill is £65. | The latest calculations from the regulator found that the average profit margin made by an energy supplier on an average £1,315 bill is £65. |
| However, this figure can be volatile. The snapshot profit margin has risen above £100, but has also fallen to a negative figure at certain points in recent years. | However, this figure can be volatile. The snapshot profit margin has risen above £100, but has also fallen to a negative figure at certain points in recent years. |
| Political row | Political row |
| Profit levels prompted Labour leader Ed Miliband to declare that gas and electricity bills would not go up for 20 months if Labour won the 2015 election. | Profit levels prompted Labour leader Ed Miliband to declare that gas and electricity bills would not go up for 20 months if Labour won the 2015 election. |
| Prime Minister David Cameron condemned the pledge as a "gimmick", saying the government was simplifying bills to make it easier for consumers to switch suppliers and encourage competition. | Prime Minister David Cameron condemned the pledge as a "gimmick", saying the government was simplifying bills to make it easier for consumers to switch suppliers and encourage competition. |
| SSE said it expected its annual profit margin to average about 5% over a three-to-five-year period, which it believed was "a fair amount". | SSE said it expected its annual profit margin to average about 5% over a three-to-five-year period, which it believed was "a fair amount". |
| It said its profit margin was 4.2% in the 2012-13 financial year and was expected to fall short of the 5% target again this year. | It said its profit margin was 4.2% in the 2012-13 financial year and was expected to fall short of the 5% target again this year. |
| "We know we will come in for a great deal of criticism for this decision and politicians will no doubt be lining up to condemn us," said SSE's Mr Morris. | "We know we will come in for a great deal of criticism for this decision and politicians will no doubt be lining up to condemn us," said SSE's Mr Morris. |
| "But over many years, policymakers themselves have failed to highlight adequately the cost to consumers of the policies they have pursued in government. | "But over many years, policymakers themselves have failed to highlight adequately the cost to consumers of the policies they have pursued in government. |
| "They can't expect to have power stations replaced with new technologies, the network to be upgraded and nationwide energy efficiency schemes all to be funded for free. | "They can't expect to have power stations replaced with new technologies, the network to be upgraded and nationwide energy efficiency schemes all to be funded for free. |
| "And as an energy provider, we are in the unenviable position of having to pass this cost on to consumers through energy bills." | "And as an energy provider, we are in the unenviable position of having to pass this cost on to consumers through energy bills." |
| Business and Energy Minister Michael Fallon said he was "disappointed" by SSE's decision to increase energy prices. | |
| He told BBC Radio 5 live: "I would encourage all customers to look again at their tariffs and see whether they can switch to a cheaper tariff." | |
| He added the long-term answer to high energy bills was "more competition and encouraging consumers to shop around". |