SSE blames rising costs for increase in household energy bills

The energy company said the increase would affect a typical dual fuel bill from 11 July, comprising a 5.7% rise for gas and 7.7% for electricity. The move will increase the average bill for 2.36m customers on standard rates by £1.50 a week.

Customers on fixed-price rates, prepayment meters or the vulnerable customer safeguard tariff will not be affected.

SSE said it was forced to increase prices because of the rising cost of energy in the wholesale market and government requirements to switch to lower-carbon energy and install smart meters. The company also said it would scrap its £6 per fuel annual discount for paperless billing.

Stephen Forbes, SSE Energy Services' chief operating officer, said: "We deeply regret having to raise prices and have worked hard to withstand the increasing costs that are largely outside our control by reducing our own internal costs. We will be writing to all affected customers, setting out details of the changes and identifying any ways in which we could help them save money."

SSE's move may trigger a wave of similar moves by other UK energy providers. The price increases could be controversial because politicians and Ofgem, the sector's regulator, have accused energy companies of failing to give a good deal to customers who do not shop around.