Energy firm to auction electricity

12/10/11

By Sarah Tawton

Scottish and Southern Energy (SSE) has announced plans to auction its electricity supply on the open market.

The group will become the first of the "big six" energy companies to offer its power for sale to any household supplier.

The major energy firms currently sell most of their electricity directly to customers.

But Labour leader Ed Miliband recently called for an end to this "rigged market" which delivers massive profits to suppliers while creating rising bills for customers.

SSE's move could be a step towards helping new suppliers enter the market, which may eventually lead to lower electricity bills for customers as a result of increased competition.

The firm said it plans to begin auctioning its electricity on Friday, selling 25 per cent of its power via this method by the end of next month.

By early 2012, SSE aims to auction its entire power supply on the UK's day-ahead wholesale market, buying all the electricity its customers need from the same source.