SSE has become the last of the ‘Big Six’ energy suppliers to announce price rises this spring, pointing the blame at the spiralling “cost of supplying energy”.
The utility confirmed this morning that from 11 July 2018 its standard domestic dual fuel prices will rise by an average 6.7% – equivalent to around £76 per year – to reflect what SSE labelled as “sustained increases in wholesale and policy costs”.
The increase is expected to hit around 2.36 million customers from both SSE and M&S Energy.
Stephen Forbes, chief commercial officer at SSE Energy Services, said the firm “deeply regret” having to raise prices, adding that the firm had worked hard to withstand the costs of supply energy – those which are “largely outside” of its control – by reducing its internal costs.
“However, as we’ve seen with recent adjustments to Ofgem’s price caps, the cost of supplying energy is increasing and this ultimately impacts the prices we’re able to offer customers,” he said.
SSE in particular pointed towards the cost of policies which support low-carbon generation, such as the feed-in tariff and Renewables Obligations, costs which SSE has argued should instead be funded via means-tested general taxation.
It’s not an uncommon complaint. Both npower and British Gas have squared recent price rises almost solely on increasing policy costs which are recovered through consumer bills.