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SSE raises energy prices by 8.2% – adding £104 to average annual bill SSE raises energy prices by 8.2% – adding £104 to average annual bill
(about 1 hour later)
More than 7m households face added financial pressure this winter after one of Britain's biggest energy companies said it would raise prices by 8.2%.More than 7m households face added financial pressure this winter after one of Britain's biggest energy companies said it would raise prices by 8.2%.
Customers of SSE will have around £104 added to annual bills after the higher charges are imposed from 15 November. Customers of SSE will see annual dual fuel bills rise by around £104 to £1,380 after the higher charges are imposed from 15 November.
The rise intensified the battle between UK energy companies and ministers over prices hikes, and SSE said governments past and present must take their share of the blame for increases. The company said it would not raise prices again before autumn 2014 at the earliest and advised customers worried about the hike to get in touch to discuss possible help available to them.
The decision to increase prices intensified the battle between UK energy companies and ministers over prices hikes, and SSE said governments past and present must take their share of the blame for increases.
The debate has intensified since Ed Miliband infuriated energy companies by announcing he would freeze energy prices for 20 months if Labour wins the election in 2015.The debate has intensified since Ed Miliband infuriated energy companies by announcing he would freeze energy prices for 20 months if Labour wins the election in 2015.
"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. But over many years policymakers themselves have failed to highlight adequately the cost to consumers of the policies they have pursued in government," said Will Morris, group managing director of SSE's retail business."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. But over many years policymakers themselves have failed to highlight adequately the cost to consumers of the policies they have pursued in government," said Will Morris, group managing director of SSE's retail business.
"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 customers through energy bills.""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 customers through energy bills."
SSE blamed a 13% rise in government-imposed levies on energy bills for the changes to its household energy tariffs, as well as the costs of upgrading electricity and gas networks and a rise in wholesale prices.SSE blamed a 13% rise in government-imposed levies on energy bills for the changes to its household energy tariffs, as well as the costs of upgrading electricity and gas networks and a rise in wholesale prices.
Challenging Westminster, Morris said that "if politicians want to do something to make bills cheaper and fairer", they should take the cost of government policies out of bills and fund them through general taxation instead.Challenging Westminster, Morris said that "if politicians want to do something to make bills cheaper and fairer", they should take the cost of government policies out of bills and fund them through general taxation instead.
He said that would take around £110 off household bills "immediately".He said that would take around £110 off household bills "immediately".
Michael Fallon, energy minister, said the price rise announced by SSE was "disappointing" and urged people to look around for better deals. "Not enough switch at the moment. The real answer is compeition, I'd like to see more competition in this market," he told Sky News. Michael Fallon, energy minister, said the price rise announced by SSE was "disappointing" and urged people to look around for better deals. "[There is] not enough switch at the moment. The real answer is compeition, I'd like to see more competition in this market," he told Sky News.
Gillian Guy, chief executive of Citizens Advice, appealed to other energy companies to refrain from raising their prices to avoid pushing more people into poverty.
"This price rise will be a blow for stretched budgets. The hike comes at a time when some working households are turning to food banks to feed their families as they struggle to cope with the rising cost of living. I hope other energy firms show an understanding of their customers' financial situation by not raising their prices this winter."
Ann Robinson, director of consumer policy at uSwitch.com, described the price rise as "a crippling blow for consumers".Ann Robinson, director of consumer policy at uSwitch.com, described the price rise as "a crippling blow for consumers".
"The danger now is that the other big six suppliers will follow suit. This raises the spectre of yet more households forced to cut back on their heating. Last winter almost seven-in-10 households went without heating at some point to keep their energy costs down, while over a third said that cutting back on energy usage was affecting their quality of life or health. This is the grim reality we face as the cost of energy spirals ever higher.""The danger now is that the other big six suppliers will follow suit. This raises the spectre of yet more households forced to cut back on their heating. Last winter almost seven-in-10 households went without heating at some point to keep their energy costs down, while over a third said that cutting back on energy usage was affecting their quality of life or health. This is the grim reality we face as the cost of energy spirals ever higher."
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