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Energy supplier warns of price rises
By Rebecca Atkinson
Customers of Scottish and Southern Energy (SSE) have been warned that they may face higher energy bills going forward as the high oil costs continue to hit energy suppliers' revenue potential.
The supplier, which has more than nine million customers, released its financial results today which reveal it is on track to deliver an increase in profit of around 4% this year. Despite this growth, SSE warns that the "extremely volatile" wholesale gas and electricity markets may continue - making energy bill hikes increasingly likely.
Ian Marchant, chief executive of SSE, says: 'The extent of the energy shock with which the entire global economy is having to contend has been well-documented, and its full impact on prices for electricity and gas in the UK has still to be felt.
"We are continuing to resist the pressure to put up prices for domestic customers, but doing so is becoming more difficult by the day."
The warning comes after a report commissioned by British Gas forecast that energy bills could hit £1,000 a year over the next 24 months.
In response to the warning, Graham Kerr, of consumer watchdog energywatch, said: "Gas bills in Britain have doubled over the last few years and electricity bills aren't far behind. Further large scale increases will be catastrophic for British consumers, British businesses and the wider economy."
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