Scottish and Southern Energy (SSE) has announced it will change the way it sells energy in a surprise move away from the practices of other Big Six suppliers. Consumer groups have hailed the move as a step in the right direction for more transparency and said it could keep prices at a fair level in the long run.
Starting from this Friday, SSE will phase in the auction of all of its electricity supply and purchase all of its electricity demand in the day ahead market.
Alistair Phillips-Davies, SSE’s Generation and Supply Director said: “We believe this commitment represents the most significant change to the GB electricity market since the market arrangements were amended in 2005, to form the current market arrangements known as BETTA.”
Under BETTA (British Electricity Trading and Transmission Arrangement), suppliers buy electricity from generators in the wholesale market and sell it on to end consumers.
SSE’s new move will see the company offer all its electricity for trade to any household supplier.
Consumer groups welcomed the move as a chance to open up the market.
Adam Scorer, Director of External affairs at Consumer Focus said: “It is good to see one of the big players taking steps that will help smaller suppliers compete. The opening up of the day-ahead market is unlikely to make much difference to prices across the big suppliers in the short-term. But it should make it easier for new players to enter the energy supply business and help existing small suppliers to grow.”
He added: “More open trading will help to increase transparency over the prices suppliers pay and increase competitive pressure in the market – which will help to keep pricing fair for consumers.”