Politicians clamour to take credit for SSE price freeze
POLITICIANS yesterday rushed to take credit for SSE’s pledge to freeze energy prices until 2016, despite the big six supplier combining the move with plans to slash its renewables investment and axe jobs.
Prime minister David Cameron said the government’s decision to roll back some green levies from customers’ bills was responsible for the decision.
But Labour leader Ed Miliband, who in September pledged to freeze customers’ energy bills if elected, accused Cameron of changing his stance after criticising the Labour proposal.
“One of biggest concerns they [customers] have is that energy prices may well be going up again,” SSE chief executive Alistair Phillips-Davies, who had previously spoken out against a price freeze, told the BBC. “The most important thing for our customers over the next couple of years is freezing prices.”
The move, which was applauded by consumer groups, puts pressure on SSE’s peers to follow suit, although no other big six firms would give a definitive decision yesterday.
“SSE’s move is competition in action. In a competitive market, we always look at how we respond,” a spokesperson from FTSE 100 peer Centrica, which owns British Gas, told City A.M.
SSE plans to shelve four offshore wind projects and cut 500 jobs as part of a streamlining process to save £1bn.
The market responded well to the announcement, which also unveiled a relatively flat earnings outlook and a promise to protect its dividend. The plans came ahead of the regulators’ energy market competition review today, which is expected to recommend a referral to the Competition and Markets Authority. SSE shares were up 1.34 per cent. Centrica was down 2.83 per cent.