PM attacked as power firm hikes bills by 10%

London Evening Standard/LondonDavid Cameron was caught in a storm over energy prices yesterday after one of the “big six” firms hiked bills by nearly 10% for customers in the south-east.The prime minister came under fire as SSE hit millions of households with electricity and gas price rises of 8.2% on average across Britain — or at least £100 a year more.In the south-east, apart from London, the rise will be an eye-watering 9.7% on average, more than three times inflation.SSE, which made pre-tax profits of £1.4bn last year, saw its share price go up 1% after the tariff increases were announced.But it sparked warnings that more pensioners could die from cold this winter, as the cost of heating their home rises. Labour claimed hard-pressed consumers were now “paying the price” for Cameron’s “failure to stand up to” energy companies. “New electricity and gas price rises announced show the need to freeze bills,” said party leader Ed Miliband, who believes energy giants are “profiteering”.SSE customers in London face rises of 8.1%, while tariffs will go up 7% in the north and southern Scotland.Ann Robinson, director of consumer policy at website uSwitch, warned the rises would be “devastating” for some. “How many more people are going to freeze to death this winter?” she added. About 4.4mn household electricity customers and 2.9mn household gas customers in Britain would be affected by the SSE rise. It is due to come into effect from November 15. Energy Secretary Ed Davey urged customers to consider ditching the firm if they can find a cheaper deal. “People should take the opportunity now to make sure they are on the best deal available,” he said.Energy minister Michael Fallon added: “It is for the company to justify a big increase of that kind.” But he got into difficulty on Sky News after claiming only 4% or 5% of the SSE price hike was down to government taxes. After being challenged by Tony Keeling, the firm’s communications director, he was forced to agree government measures had pushed bills up by “just under 10%”.With other utility giants expected to follow SSE with hikes, Fallon said: “They’re supposed to be competing with each other”. This sparked speculation ministers are preparing moves to keep down bills, following Miliband’s promise to freeze them for two years if Labour wins power in 2015. SSE, which trades as Southern Electric, Swalec and Scottish Hydro, blamed the increase on the higher cost of buying energy on the global markets, the higher cost of using upgraded gas and electricity networks, and government levies collected through bills.