31st Mar 2006 10:00
Scottish & Southern Energy PLC31 March 2006 PRICES FOR ELECTRICITY AND GAS TO INCREASE FROM MAY 2006 Scottish and Southern Energy plc ("SSE") will increase its prices for themajority of its domestic electricity and gas customers on 1 May 2006. Standardprices for electricity customers will increase by 9.4% on average and standardprices for gas customers will increase by 16.5% on average. SSE will, however,hold its electricity and gas prices for these domestic customers at theirrevised levels until at least the start of 2007. This is in line with SSE's policy, which is to seek to protect its customersfrom the worst impacts of high and volatile wholesale energy prices and to delayfor as long as possible any increases in prices for gas and electricity. SSE'sdecisions to delay price rises have saved a typical* gas and electricitycustomer around £100 since the start of 2004, compared with what they would havepaid had SSE increased prices at the same time as the UK's largest energysupplier. All other major suppliers of energy have already increased their prices fordomestic customers on at least four occasions during that period - and some haveincreased prices five times. This is the fourth time that SSE has increaseddomestic electricity and gas prices since the start of 2004. During that timewholesale electricity prices have risen by 165% and wholesale gas prices haverisen by 180% whereas the cumulative average price increases made by SSE in thatperiod are 37% and 61% respectively. For customers who like peace of mind and wish to guard against futureuncertainty in energy prices, SSE is introducing a 'fixed price' tariff for gasand electricity. While the fixed price is higher than the revised prices whichwill take effect on 1 May 2006, it is guaranteed until 2010. During 2005, SSE introduced its 'energyplus Care' tariff and package of servicesfor its most vulnerable customers. The package should enable an eligible family** living in a three bedroom house to cut their total energy bill by around 30% ayear compared with standard tariffs. The price rise for 'energyplus Care'customers will be delayed until 1 September 2006, and for customers who usepre-payment meters it will be delayed until 1 July 2006. SSE supports the Home Heat Helpline (0800 33 66 99), a free phone numberoffering practical energy advice for vulnerable people. The Helpline is staffedby trained advisers who carry out a preliminary assessment of callers' benefitentitlement. They are also linked to each energy supplier's priority care team. In the three years from 2005 to 2008, SSE is implementing schemes to enablecustomers to use energy more efficiently which will result in an estimatedbenefit to the community of over £70m per annum. As announced in Budget 2006, itis also bringing forward the funding of an additional 80,000 cavity wall andloft insulation jobs to the period before 2008. *Based on a customer on the General Domestic tariff in the Southern areaconsuming 3,300 kWh of electricity and 20,500 kWh of gas per annum on standardquarterly payment terms and including VAT at 5%. Equivalent savings in theSwalec area are also around £100 and in the Scottish Hydro area around £95. **An eligible household is one which spends more than 20% or more of its incomeon fuel. Alistair Phillips-Davies, Energy Supply Director of SSE, said: "The impact ofhigh wholesale energy prices can only be absorbed for so long and we havedelayed this price increase for as long as possible. In doing so, we have againimposed price rises more slowly than our competitors, an approach which has beenof real help to our customers over the past two years. We are also making acommitment to hold electricity and gas prices at their revised levels until atleast the start of 2007, which is in line with our policy of responsiblepricing. This policy clearly helps all customers. We are also ensuring our mostvulnerable customers receive further help though our 'energy plus care' package,which offers practical help with fuel bills to those who most need it." Enquiries to: Scottish and Southern Energy Alan Young, Director of Corporate Communications 0870 900 0410 Sharron Miller McKenzie, Corporate Communications 0870 900 0410 This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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