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Andrew Daniel

Andrew is the newest member of the team and is already making his mark with his insightful & cutting edge reporting on the latest news in the personal finance arena.

SSE defends it’s 9% price increase

SSE blame increased costs of distribution, environmental costs and social obligations as well as rising market prices for their decision to raise prices.

The energy firm SSE which trades as the brands Scottish Hydro, Swalec and Southern Electric announced 9% average price increases yesterday to come into force on the 15th October 2012 when their current price freeze ends.

Defending the rise in an open letter to it's 3.4m Gas and 5m Electricity customers, SSE's CEO Ian Marchant put the blame on the regulatory framework saying: "Over the last year the costs we face have increased significantly including the charges for delivering electricity and gas to your home, the cost of environmental and social obligations, and what we have paid for the energy we'll supply to you this winter.”

SSE are the first of the big six to introduce price rises which makes their prices look rather high as Consumer Focus, the statutory consumer body for the energy and postal services markets highlights:

Consumer Focus Price Comparison

SSE have promised no further increases before July 2013 at the earliest. SSE are relying on a combination of consumer inertia and the expectation that the other suppliers will raise their prices to keep it's customer base.

The table is based upon "typical usage figures” so don't rely on it to show the best supplier for your specific energy usage. It does show that if you are still paying for Gas and Electricity by Quarterly Cash or Cheque then, if you can, you should move to monthly direct debit when you next review your energy supplier especially if you are with Scottish Power.