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Household gas price changes from March 2010
1. There are a number of 'fixed' costs in supplying gas to customers which do not vary with consumption, such as the cost of distributing gas to people's homes, metering, energy efficiency measures (such as CERT), billing, and customer service costs. SSE recovers these costs in its gas tariffs through both 'fixed' and 'unit' charges. The 'fixed' charges are either in the form of a ‘standing’ charge or a higher unit rate for the first 1,143kWh of gas consumed in each quarter of the year. To align them more closely to the unit charge structures adopted by other suppliers, and therefore make price comparisons easier, the level of SSE’s ‘fixed’ charges will increase to £98, including VAT. Within Great Britain’s gas supply market, the average ‘fixed’ charge levied by the other five major suppliers is £120, including VAT.
2. Under SSE’s package of changes, unit prices for gas not forming part of the initial 1,143kWh per quarter unit rate will be cut by at least 11%.
3. The savings quoted are for customers in England and Wales. In Scotland the equivalent savings are: 4% or £28 (standard credit/direct debit); 7% or £52 (single fuel); and 11% or £90 (pre-payment).
4. Following these changes, SSE’s average ‘dual fuel’ standard credit bill will be £1162 averaged across Great Britain and based on average domestic consumptions (3,300 kWh electricity per annum and 20,500 kWh gas per annum). Excludes ‘prompt pay’ discount of 2.5%. Includes VAT at 5%.