Monthly Archives: November 2010

Energy prices…to hike or not to hike?

Wholesale Energy Prices November 2010

Wholesale Energy Prices November 2010


Last week we put out a brief report on SSE’s decision to hike its gas prices by 9.4%.
 
In that analysis we highlighted SSE’s arguments for the increase (rising wholesale prices and unsustainable significant losses in its gas business). We then went on to analyse these factors to assess whether the increase was justified.
 
Our conclusion, based upon the conflicting evidence, is summarised below. Continue reading

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SSE gas price hike…justifiable or not?

Wholesale Energy Prices November 2010

Wholesale Energy Prices November 2010


SSE, otherwise known as Scottish and Southern Energy, has announced that it will be increasing gas prices by 9.4% on 1 December 2010.
 
The company puts the reason for the increase on 2 main factors;
 

  • A 25% increase in forward annual wholesale gas prices since March 2010.
  • The fact that it’s gas supply business has been operating at a substantial loss for several years.

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