ENERGY giant SSE has pledged to cut a recent price hike for customers by up to half if the Westminster Government eases the burden of environmental levies.

The government has said it will make an announcement next month on proposals to shift some of its environmental and social charges away from energy companies to reduce bills.

Alistair Phillips-Davies, who took over as chief executive of SSE in July, said: "We would look to implement and pass on any cost reductions that we receive from government."

The Scotland-based company has revealed that its retail business slumped to an £89 million operating loss in the six months to September because of high gas prices, rising distribution charges and the cost of the government green levies.

SSE, ranked second of the big six utility companies, raised gas and electricity prices by 8.2% in October, sparking criticism from politicians and consumers.

Meanwhile, there was growing concern over figures published by the National Audit Office (NAO), and reported in The Herald yesterday, warning that energy and water bills will continue to rise for the next 17 years. The NAO said it estimated there would be an 18% average real-terms rise in household energy bills between now and 2030.

Ann Robinson, director of consumer policy at uSwitch.com, said: "These figures are simply shocking. The country is already on the brink of an energy affordability crisis with almost seven in 10 households going without heating at some point last winter and over eight in 10 saying they will be rationing their energy use in an attempt to keep a lid on bills."