SSE to hike electricity prices by 15%

SSE will increase its standard domestic electricity prices from 28 April, bumping up a customer's typical dual fuel bill by £73 or an average 14.9% to reflect the increasing cost of supply.

The company, which will hold its gas prices at current levels, said dual fuel customers will still pay less than they did at the end of 2013 due to three reductions in gas prices and one electricity price cut since then.

In addition, SSE said it will establish a £5m fund to help minimise the impact on vulnerable customers.

The prices increase - the first in three and a half years – will affect around 2.8m customers in Great Britain.

SSE said the move reflects the increasing cost of supplying electricity, and specifically higher costs associated with delivering government programmes designed to upgrade Britain's ageing energy infrastructure and help the country move towards a low carbon future.

Will Morris, managing director for Retail, said: "We deeply regret having to raise electricity prices. This is the first increase since 2013 and we've worked hard to keep them down for as long as possible by cutting our own costs, putting in place a winter price freeze and holding gas prices, but we have seen significant increases in electricity costs which are outside our control. Without an increase we would have been supplying electricity to domestic customers at a loss."

At 0930 GMT, the shares were down 0.7% to 1,492.64p.