SSE joins rest of ‘big six’ in raising prices to meet Ofgem cap
SSE has joined the rest of the “big six” in raising its standard variable energy tariff to meet Ofgem’s latest price cap.
The supplier’s 10.22% increase from April 1 will see the typical customer on a standard tariff pay £117 more a year to reach £1,254.
The increase will affect around 2.1 million SSE customers, while those remaining on standard tariffs with all big six companies will potentially pay a collective £1.29 billion more for their energy.
SSE’s typical dual fuel Pay As You Go customer will see their prices increase by around £106 a year, or a total of £1,242.
Tony Keeling, SSE’s chief operating officer and co-head of retail, said: “We regret having to raise prices but with wholesale costs having steadily increased, as shown by Ofgem’s calculations, we need to pass these on in our prices.”
SSE follows British Gas and Scottish Power this week and E.ON, EDF and npower last week in raising the cost of their standard plans to an annual average of £1,254 – the level of the regulator’s latest price cap.
Ofgem announced on February 7 that it would increase the price cap for default and standard variable gas and electricity tariffs by £117 to £1,254 a year from April 1 due to hikes in wholesale costs.
The watchdog said previously those affected would still pay a “fair price” for their energy as the increase reflects a genuine rise in underlying wholesale costs, rather than provider profiteering.
Alex Neill, Which? managing director of home services, said: “Inevitably, SSE has fallen in line with the rest of the big six.
“Two in five UK households will now be collectively hit with a billion pound price hike when their energy bills increase on April 1.
“This is a huge blow for those who thought they would be protected by the regulator’s price cap. Anyone staring down the barrel of this sharp rise should look to switch to a better deal now – before their bills go up.”