Energy firm SSE, the owner of Swalec, has announced that bills for gas and electricity will rise in Wales by an average of 9% from November 15.
The company has blamed the increase on higher costs of buying wholesale energy, rising costs of paying to deliver it to customers’ homes and government charges.
The 9% average increase for Welsh customers is based on a duel fuel tariff. Based on the new figures, on November 15, SSE’s average annual standard dual fuel energy bill will rise from £1,131 to £1,232.
Will Morris, Group Managing Director, Retail, said: “We’re sorry we have to do this. We’ve done as much as we could to keep prices down, but the reality is that buying wholesale energy in global markets, delivering it to customers’ homes, and government-imposed levies collected through bills – endorsed by all the major parties – all cost more than they did last year.
“Eighty five per cent of a typical energy bill is made up of costs outside our direct control and these costs have increased. So far this year we have made a loss from supplying energy as a result of the higher costs we have been facing and continue to face.
“We understand and regret that this will add to the pressures on household budgets, but there’s a lot we can do to help. Rising unit prices do not have to mean rising bills and there remains huge potential for customers to save money by improving further their energy efficiency. There’s also real financial and practical support available to those who need it most. I would urge any customer worried about their energy bills to contact our team on 08000 727 222 so that we can find ways to help them.”
Ed Davey, the energy and climate change secretary, said it was unwelcome news for customers.
He said: “Half of an average energy bill is made up of the wholesale cost of energy. This far outweighs the proportion of a bill that goes to help vulnerable households with their bills and to cut energy waste, and to encourage investment in the new low-carbon energy generation we need to keep the lights on.
“SSE’s own figures show that wholesale price rises have contributed more than policy costs to this price increase, as a share of the bill.
“We’ve already taken action to help consumers this winter. Two million households will get as much as £200 off their bills under the warm home discount. 230,000 homes will be warmer this year by getting energy efficiency measures installed under the element of the energy company obligation. We’re also changing energy bills by cutting the number of tariffs, making bills simpler and clearer, and getting people off poor-value dead tariffs and on to the best deal for them.”
Islwyn MP Chris Evans, who has previously campaigned for lower energy bills, said: “I am seriously concerned that once again we are seeing energy price rises just before the weather gets colder.
“The 8% price rise announced today follows a previous increase from SSE last year. It seems to me that these rises have become something of an annual tradition.
“That is why I have written to the Chief Executive of SSE as I am increasingly concerned about the impact rising energy costs are having on households in Islwyn.”
Surprise, surprise. It is time the government broke up this cosy cartel of energy companies that are damaging the economy and causing misery for many, expecially the ill and the poor.
Watch this space as all the other energy companies inflict inflation busting rises on us.
The Tories and the Liberals are already spinning that Ed Miliband's welcome announcement that an incoming Labour Government would freeze energy prices for 17 months had something to do with this recent increase. Absolute nonsense!!
I share Cllr Richard Williams' distain over the latest inflation – busting increase. Its time that the energy companies were brought to book and I hope the fierce reaction from consumers will make the coalition government stand up and take note. This is a rigged market. Capitalism gone wrong. Its about time we had a discussion on the renationalisation of all public utilities.
It is refreshing to see local Councillors, James Pritchard and Richard Williams, expressing their views on this and other issues which effect their constituents, whilst others, sit on their hands and let their constituents suffer in silence.
Good for Pritchard and Williams for expressing the views `almost` all of us hold.
If I were a cynic, I would say "so what" those who cannot pay their utility bills and feed themselves can now get a food handout from the British Red Cross, this is in addition of course the already very busy and efficient food banks in Caerphilly and the rest of Wales, Welcome to the real world, a world in Britain where the `have`s rub shoulder, but ignore, the `have nots.
This will all end in disaster, deaths, increased child poverty, increased hospital admissions during the coming months, bed blocking, cancelled operations, old people too proud to look and seek out handouts, etc etc.
For gods sake when will someone in the government, including the Welsh Government accept this situation totally unacceptable, never, I predict,for so long as they belong to the `have class.
The energy firms have no, compassion, no concern, nor any real conviction to it`s customers, and why should they? their sole responsibility is to their shareholders.
The fact is that every household in Britain is a customer of one utility provider or another, so even if you switch suppliers all you are doing is joining a carousel which leads to the next provider who raises their prices after you switch.
The Labour party are on the right lines, restrict the charges in which these robbers have to cut their cloth, they don`t like it of course and are throwing their toys out of the pram, they are doing so with the support of Tory and Lib Dem Government Ministers and Junior Ministers, which the Tory high command are rolling out to spout bile in support of the robbing energy Companies.
Roll on the next election when this matter will become a cause celeb and every household in the country will be able to endorse the actions of the Labour Party, or, pay up and shut up for ever more, having failed to take action against these thieving crooks.