Energy prices could rise across the board after power giant hikes bills

Households have been warned to brace themselves for a grim winter of rising fuel costs after Scottish and Southern Energy announced a significant hike in its standard tariff.

• Almost 70 will be added to the average customer's gas bill per year Picture: PA

The Perth-based energy firm, which has more than nine million customers across the UK, said bills would rise by almost 10 per cent from 1 December, adding an extra 67 to the average customer's annual gas bill.

Other power companies yesterday refused to rule out upping their own tariffs, sparking fears that SSE's announcement could be the beginning of a domino effect for energy consumers.

The rise is due to take place during the priciest period for consumers - winter months when they already face higher bills to heat their homes - prompting concern from consumer groups.

"Scottish and Southern's announcement is the last thing its customers need," said Trisha McAuley, deputy director at Consumer Focus Scotland. "We are worried this could be the start of some serious bad news for all consumers. While we hope that other companies don't follow suit, history has shown us they adopt a pack mentality."

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Ann Robinson, the director of consumer policy at uSwitch.com, added: "With winter about to kick in, this is a body blow. What nobody wants to see is a repeat of 2008, when suppliers last put prices up and bills rocketed by 381, or 42 per cent, as a result."

SSE customers on a standard tariff will see their average yearly bill rise to 782 a year, while those on its dual fuel system will suffer a 67 hike. Politicians and campaigners have warned the rise, which will affect 3.5 million SSE customers, could hit hard those suffering from fuel poverty.

The company apologised for the timing of the rise, which will leave customers scrabbling around for extra cash weeks before Christmas.

"The last few months have been marked by rising wholesale gas prices and, having absorbed losses in our gas supply business for some time, we cannot delay an increase in retail prices any longer. I am sorry it will take effect during the winter period," said Alistair Phillips-Davies, energy supply director of SSE, which also owns Southern Electric, Scottish Hydro and Swalec.

SNP energy spokesman at Westminster, Mike Weir, MP, warned that the impact would be compounded by the public sector budget cuts.

"It is almost certain that this is just the beginning of a round of energy price increases by the big six suppliers, and it spells another blow to hard-pressed households as winter approaches.

"These increases will be felt by the poorest most - and impact particularly hard on households that are already vulnerable."With VAT going up from January, we need to be more aware than ever about the impact these increases will have on people already in fuel poverty."

The company has pledged a "no disconnection policy" for all customers over the winter.

But Lindsay Scott, spokesman for Age Scotland, said elderly people might still be at risk.

"We're very disappointed," he said. "SSE has promised it will not cut off anyone during the winter, but that means that a lot of vulnerable people may not have energy after 1 April."