Now energy giant puts bills up by 15% () and they’re blaming it on green subsidies

ENERGY giants face a showdown with Theresa May over claims that the Government is to blame for soaring bills.

Britain’s second-biggest energy firm, SSE, yesterday announced a 14.9 per cent increase in electricity tariffs, adding more than £70 to annual bills.

It blamed Government levies which are designed to subsidise a shift to green power, as well as provide cheap insulation and discounts for low-income households.

However, official figures from the industry watchdog, Ofgem, show the increase in these levies equate to a much smaller 2.5 per cent rise in costs.

SSE is the latest of the ‘big six’ energy firms to announce price rises that will collectively add more than £730million a year to the cost of heating and lighting homes. Last week, the Germanowned E.ON used the same tactic when announcing an increase of 13.8 per cent on electricity and 3.8 per cent on gas. SSE said: ‘The price change reflects the increas- ing cost of supplying electricity, and specifically higher costs associated with delivering Government programmes designed to upgrade Britain’s ageing energy infrastructure and help the country move towards a low-carbon future.’

But Ofgem said these claims are ‘not at all’ borne out by the figures. It added: ‘The cost of Government environmental and social programmes, while rising, make up only a small part of the costs facing suppliers overall. We urge customers facing price rises to shop around for a better deal.’

On Thursday, MPs will be voting on whether to give the Government the power to cap ‘rip- off ’ standard variable tariffs, which most families are on but can cost £200-£300 more than the cheapest tariffs on the market.

Attempts by energy firms to shift the blame for rising bills puts them on collision course with the Prime Minister.

Mrs May told the Tory Party conference in October: ‘It’s just not right that two-thirds of energy customers are stuck on the most expensive tariffs.’

And she has repeatedly told MPs that tackling unfair energy bills is at the top of her agenda.

Industry critics in Parliament are being led by the former Tory Cabinet Office minister, John Penrose, who said: ‘Loyal customers are being systematically ripped off by big energy firms, and it’s just not fair.’

Mark Todd, of energy switching firm Energyhelpline, said: ‘The hike is a hammer blow to households with many already struggling to make ends meet. There is no wholesale price justification for the rise and the regulator appears to be denying that there is sufficient other cost justifications.’

And Martin Lewis, founder of the Money Saving Expert website, said: ‘The picture is grim – everyone on a standard tariff from the big six is being ripped off.’

SSE said last night it is launching a £5million fund to protect its poor and vulnerable customers.

Its managing director for retail, Will Morris, added: ‘This is the first increase since 2013, but we have seen significant increases in electricity costs which are outside our control.

‘Without an increase we would have been supplying electricity to domestic customers at a loss.’