Energy bills will rise say SSE

30 May 2008

Scottish and Southern Energy predicts sharp increases in energy prices

One of the UK’s largest energy suppliers has forecasted sharp rises in the household energy bills, after saying that it would probably not be able to maintain current prices over the course of the year.

Higher wholesale energy costs were starting to affect profit margins and so prices would eventually need to go up to reflect that said Ian Merchant, chief executive of Scottish and Southern Energy (SSE).

“We can absorb (higher costs) for so long and eventually someone’s position changes,” he said.

“If prices go up we want to be the last to do it but the reality is the whole industry is facing significant pressures on input costs,” he added.

He said SSE has no plans to put prices up however, if wholesale prices are maintained, SSE would not be able to “defy gravity”.

Analysts in the city are predicting that energy companies will need to put up electricity prices by a minimum of 15% before September.