Scottish and Southern raises bills

Scottish and Southern Energy yesterday announced inflation-busting price rises for its 6 million residential customers.

The company, which owns Southern Electric, Scottish Hydro Electric and Swalec, said gas bills would go up by 9.1% and most electricity bills by 6.7%. It promised not to raise the price of electricity again until at least January next year and would try to do the same with gas.

Scottish and Southern is the latest supplier to announce big price increases. The moves are blamed on wholesale prices. Its last rise was in June last year when it said gas bills would go up by 9% and electricity by between 2.9% and 3.7%.

Ian Marchant, the chief executive, said: "We gave a commitment last summer to hold domestic energy prices until at least early 2005. Since then every other energy supplier has increased prices, in some cases twice."