Scottish and Southern Energy (SSE) has announced that it is cutting prices by four per cent or £30 for gas with effect from 29th March 2010. It is the second major supplier to announce a cut so far this year and SSE says the reduction will see its average annual dual fuel bill drop from £1,192 to £1,162
The move comes just weeks after Britain's biggest supplier British Gas reduced its gas prices by 5.5 per cent or £44. Taking last year's reductions into account, Scottish and Southern Energy has now cut prices by 8 per cent or £97 in total while British Gas has trimmed13 per cent or £170 in total off bills.
But in terms of impact on bills, British Gas is now only £4 a year cheaper than its rival, says the independent comparison and switching service, uSwitch.com.
However, households are still facing far higher energy bills than just a couple of years ago. In 2008, Scottish and Southern Energy increased its prices by 44 per cent or £384, taking its average bill from £875 to £1,259.
Even after today's price cut, its average bill will be £1,162 - £287 or 33 per cent higher than at the beginning of 2008, says uSwitch.com.
"The fact that the country's two biggest suppliers have acted to bring their prices down will put more pressure on the remaining four suppliers to do the same, but there are still no guarantees,” said Ann Robinson, Director of Consumer Policy at uSwitch.com.
"Although these reductions are welcome it's important that consumers don't become complacent. Energy prices are still far higher than just a couple of years ago and the price cuts we've seen to date are not going to make up this ground.”
Commenting on SSE announcing a four per cent price drop for its gas customers, Scott Byrom, utilities manager at moneysupermarket.com said:,"With all the talk this week of providers not passing on savings in line with wholesale gas price falls, SSE's customers may rejoice that their gas bills will be cut - but what a pity it's only by £2.50 a month.
"Effective from 29 March 2010, SSE will drop standard credit/direct debit tariffs by £30 a year, single fuel tariffs by £56 and pre-payment customers will see a £70 drop. The majority of energy giants have not made a move to drop prices while others are only making small cuts.
“Gas bills are at a 10 year high so I would advise bill payers not to hang about - you may not see the substantial price cuts you hope for any time soon so look for the best energy deal for your consumption and region.
"The good news is ‘online pay monthly’ tariffs are £300 cheaper for gas alone than the Standard quarterly tariffs. Effectively, this is an immediate 25 per cent price cut to your annual bills.
“While for many customers switching to a new provider is the best option, at the very least customers should contact their current provider and ask to move to its cheapest tariff."
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