SSE Energy Services adjusts prices following updates to the Default Tariff Cap and Prepayment Meter Cap
By 1 April 2019 SSE Energy Services will be adjusting prices for customers on its Standard Variable Tariff (SVT), Energy Assist tariff and Pay As You Go tariff in line with the updates Ofgem is making to the level of the Default Tariff Cap and Prepayment Meter Cap. The methodology for calculating the level of the caps has been set by Ofgem and is designed to reflect the real, underlying costs that go into providing energy to customers.
As a result, most of SSE Energy Services’ SVT customers, Energy Assist customers and Pay As You Go customers will see an increase in their annual energy costs following a sustained increase in the cost of supplying energy.
Tony Keeling, 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.
“However, we don’t want our customers worrying about their energy bills and there is a lot of support available, including financial rebates for vulnerable customers, energy efficiency advice and access to money saving tariffs and bundles. Our customer service team is here to help in any way they can and I would encourage anyone worried about today’s announcement to get in touch.”
The typical dual fuel SVT customer paying by monthly direct debit will see their prices increase by around £117 per annum* resulting in a new typical annual bill of £1,254*. The typical dual fuel Energy Assist tariff customer will see their prices aligned with those seen by customers on the standard tariff meaning their typical annual bill will now be £1,254*. The exact amount will vary depending on the customer’s usage profile, metering type and payment type. The typical dual fuel Pay As You Go customer will see their prices increase by around £106 per annum** resulting in a new typical annual bill of £1,242**.
There are a small number of customers who may see a decrease in their overall energy costs. This is primarily due to their usage profile and changes in the level of the Standing Charge. The amount of the decrease will vary based on the customers’ usage.
SSE Energy Services will write to all of its customers seeing an increase with personalised information about exactly how their prices will be changing and details of the extra assistance on offer.
Ofgem will review the level of the caps in August, and any updates required to reflect changes in underlying costs will be implemented in October. Following this review Ofgem will continue to assess costs in the market every six months until at least 2020 and update the level of the caps accordingly.
More information about the Default Tariff Cap and the support available to customers is available on SSE.co.uk.
* Our standard GB domestic gas and electricity prices for dual fuel customers will go up by an average of £117, calculated based on a national average across all regions for customers on the Standard Variable Tariff paying by Direct Debit with a paper bill and on an unrestricted meter. Using Ofgem’s annual Typical Domestic Consumption Values of 3,100 kWh for electricity and 12,000 kWh for gas. All prices are inclusive of VAT at 5%.
** Our standard GB domestic gas and electricity prices for dual fuel customers with Prepayment Meters will go up by an average of £106, calculated based on a national average across all regions for customers on the Standard Variable Tariff and using a prepayment meter. Using Ofgem’s annual Typical Domestic Consumption Values of 3,100 kWh for electricity and 12,000 kWh for gas. All prices are inclusive of VAT at 5%.