Energy firm SSE to raise bills by 9pc

SSE, which will introduce the price rise on October 15, said it was in response to energy price increases in wholesale markets, as well as rising costs of using the National Grid network.

The UK’s second largest energy firm, formerly known as Scottish & Southern Energy, said it would cap bills following the October price rise until at least the second half of 2013.

SSE said the nine per cent rise, which applies across gas and electricity, will add another £8.53 a month on to the typical monthly direct debit, dual fuel customer – taking the average annual bill to £1,274.

The group committed in January to keeping household bills on hold until October.

Ian Marchant, SSE chief executive, said: “Unfortunately, the increases in costs that we have seen since making this pledge can no longer be absorbed and mean that we are unable to keep prices at their current levels beyond this autumn.

“An increase in our prices has therefore, regrettably, become unavoidable.”

SSE, which trades as Southern Electric, Swalec and Scottish Hydro, said it had seen a 14 per cent increase year-on-year in the average price in the wholesale market to secure gas for the coming winter.

The group announced changes to simplify bills by introducing a new fixed standard charge of £100 per year per fuel and a single unit rate for energy used.

It will offer fixed discounts off this price, which will see direct debit customers pay £40 less a year for each fuel.