SSE completes full set of Big Six energy price rises as consumers face £1.3bn bombshell

SSE has become the last of the Big Six to announce a price hike on its standard variable tariff – meaning that two in five households will now be hit with a bill hike from April.

The Perth-based firm revealed a 10 per cent price rise for 2.1 million of its customers, raising the average bill by £116 a year. The increase means SSE’s standard plan will cost £1,253 on average, adding £248 million to bills across the country.

Prepayment meter customers will also face a £106 or around 9 per cent price rise. The move comes shortly after the government increased a price cap on standard tariffs – just six weeks after the measure was introduced. The cap will be raised to £1,254 a year for someone with typical usage from 1 April – £34 more than companies were charging in December when the cap was brought in.

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 the level of the regulator’s new cap.

Consumer groups said the increases which are due to kick in on 1 April would be one of the biggest hikes on one day in nearly a decade.

Richard Neudegg, head of regulation at uSwitch.com, said: “Over half the energy customers in Britain are on poor value standard tariffs. Sanctioned by the regulator Ofgem, the Big Six will add £1.3 billion to the bills of 11 million households come 1 April. They’ve also raised prices to the maximum allowed for prepayment customers.

“Energy customers should be under no illusion that these standard tariffs represent a good price for energy.”

Alex Neill, managing director of home services at Which?, 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 the 1 April.

“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.”

Peter Earl, head of energy at comparethemarket.com, said: “The Big Six have all now brought their SVTs within a whisker of the new price cap level.”

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.”