Energy giant SSE is hiking up gas and electricity prices by an average of 8.2 per cent, making it the first of the major suppliers to announce a price increase this autumn.
There has been increasing speculation that a number of the major energy suppliers were planning on putting prices up this autumn.
The company blamed the increased cost of buying and delivering wholesale energy as well as Government levies collected through bills.
SSE, which has around 10 million customer accounts, said the latest increase would come into effect from 15 November. It is approximately three times the rate of inflation.
SSE, which trades as Southern Electric, Swalec and Scottish Hydro, said the hike equated to an average £2 a week for a typical dual fuel customer.
Will Morris, group managing director of 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."
SSE increased their energy prices by 9 per cent in 2013. Its retail operation serving household customers saw profits increase 28 per cent to £410.1 million in the year to March as gas consumption rose by a fifth during a period that included a bitter winter.
The company pledged not to increase tariffs again within the next year.
Overall pre-tax profits were up from £1.34 billion to £1.41 billion.
But in a trading update last month, SSE revealed it made a loss on its retail operations over the summer after wholesale gas prices rose.
Now it says it has been forced to raise tariffs as the price of buying energy in global markets has risen by 4 per cent for a typical dual fuel customer, while paying to use upgraded electricity and gas networks is 10 per cent more expensive.
Meanwhile, it said Government-imposed levies on bills have risen 13 per cent.
Rising energy bills have become a key political issue after Labour leader Ed Miliband pledged that he would freeze tariffs if elected Prime Minister until the beginning of 2017.
Chief executive Alistair Phillips-Davies has previously said that the solution to bringing down prices would be to remove "stealth taxes" on bills which fund low-carbon energy and efficiency schemes.
Responding to the price increase, Citizens Advice Chief Executive Gillian Guy said: "This price rise will be a blow for stretched budgets.
“Many households are facing a daily battle try to make their frozen incomes cover mounting energy, food and travel costs. Further increases will push people into poverty.”
Posted: Thu Oct 10, 2013 2:22 pm