9th Nov 2005 14:00
Scottish & Southern Energy PLC09 November 2005 PRICES FOR ELECTRICITY AND GAS TO INCREASE FROM JANUARY 2006 Scottish and Southern Energy plc ("SSE") will increase its prices for domesticelectricity and gas customers on 1 January 2006. Prices for electricitycustomers will rise between 8.9% and 12.0% and the price rise for gas customerswill be 13.6%. When it last announced an increase in prices, in February 2005, SSE undertook tohold its electricity prices at their revised level until January 2006 and toseek to do the same with gas prices. It said that the position in respect of gasprices was dependent on trends in the wholesale gas market. Despite high and volatile wholesale energy prices, SSE has concluded that itwill be able to delay a rise in prices for domestic gas customers until 1January 2006, when its electricity prices will also rise. Despite the increase, electricity prices for domestic customers will still belower in real terms than they were in 1996. Before the price rise announced in February 2005, SSE previously announced achange in domestic energy prices in June 2004 and was the only company torestrict itself to one price increase in that year. Most other major energysupply companies have already raised their prices at least three times since thestart of 2004. Earlier this year, SSE introduced its energyplus care tariff and package ofservices for its most vulnerable customers, which enables a qualifying familyliving in a three-bedroom semi-detached house to reduce their total energy billsby around 30% compared to typical energy bills. The price rise for energypluscare customers will be delayed until 1 April 2006. To encourage the take-up of the tariff, SSE is identifying an initial group of50,000 of its most vulnerable customers and is writing directly to them to tellthem about energyplus care and related services and to invite them to get intouch with the company to establish their eligibility for it. SSE is also introducing a capped price offer for dual fuel customers payingtheir bills by direct debit. Under the offer, customers pay a 4% increase on theJanuary 2006 electricity prices and a 7% increase on the January 2006 gasprices. Their prices are then capped until February 2008. Speaking this afternoon at the Energy Action Scotland Annual Conference inErskine, SSE's Energy Supply Director Alistair Phillips-Davies said: "SSE seeksto adopt a responsible approach to domestic energy prices, protecting customersfrom the worst impacts of high and volatile wholesale prices. "Over the past three years we have demonstrated this and have imposed pricerises more slowly than competitors, an approach which benefits customers. "The pressure of high wholesale prices cannot, however, be withstoodindefinitely and we have come to the point where these price rises areunavoidable. With our Careline for priority services customers, our energypluscare tariff and our flexible approach to payment of bills, we will seek to helpour most vulnerable customers as much as possible over the coming months. "There remains a fundamental concern about the causes of high and volatile gasprices and we have sympathy with the concerns expressed by energywatch andothers about the operation of the UK's gas market. It is not noted for itstransparency or liquidity, and until progress is perceived on these issues, therisk of high and volatile prices remains - with customers feeling the impactdirectly with higher energy bills." Enquiries to: Alan Young, Director of Corporate Communications 0870 900 0410 Sharron Miller McKenzie, Press Officer 0870 900 0410 This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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