SSE announces price hike

Electricity utility company SSE has stated that it will increase prices in time for the UK's winter months.

SSE (formally Scottish and Southern Energy) is the first of the six major energy firms to increase tariffs, though it is possible that others will follow suit. SSE says it is merely passing on its higher costs, as the price of wholesale energy and cost of delivery has risen. The energy company’s stock opened higher this morning but has since drifted lower.

SSE is in a difficult position as it must strike a balance between keeping its shareholders happy while not charging excessive rates for what is an essential service. After May's announcement of a 5.6% rise in full-year pre-tax profit, customers will certainly not be happy with this morning’s announcement.

This time last year SSE reported a 9% increase in tariffs, while this morning’s increase is 8.2%. The company has promised that prices will not increase again until August 2014. Customers in the south of England will be charged an extra 9.7%, with customers in the north of England and Scotland facing a 7% rise in bills.

SSE chart

This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer and quarterly summary.

CFD’s zijn complexe instrumenten en brengen vanwege het hefboomeffect een hoog risico mee van snel oplopende verliezen. 79% van de retailbeleggers lijdt verlies op de handel in CFD’s met deze aanbieder.
Het is belangrijk dat u goed begrijpt hoe CFD's werken en dat u nagaat of u zich het hoge risico op verlies kunt permitteren.
CFD’s zijn complexe instrumenten en brengen vanwege het hefboomeffect een hoog risico mee van snel oplopende verliezen.