Scottish and Southern Raises Gas Prices by 9%

The gas prices will be raised by 9% by Britain's second biggest energy supplier, which will come into force from December 1.

Scottish and Southern Energy’s move could be imitated by other gas suppliers also, as it is for the first time that a supplier has boosted the gas prices in less than two years.

For rise in the gas bills for 3.6 million customers, the Company held wholesale gas prices responsible, which have risen as much as 25% since March 2010, when it reduced the bills.

With the increase, an average annual gas bill will surge by £67 to £782. Those getting both gas and electricity from the Company would see their bills rising to £1,226 from £1,159 a year.

As per Scottish and Southern, they increased the gas prices, as they were incurring losses from the supply of gas. It said, "Gas supply has been a loss-making activity for SSE and its gas supply business, Southern Electric Gas, has traded at a loss for several years".

After increasing robustly in 2008 by as much as 45%, the energy bills started diminishing by a small ratio. The wholesale gas prices have dropped by 40% since 2008.

The report released by Ofgem, the industry regulator revealed that energy suppliers were receiving annual profits of £50, on an average, from gas supply to each household. The figure was £20, the last year. But, even the regulator was expecting the gas bills to rise, in the wake of increasing wholesale prices.