SSE plc announced it would be reducing domestic gas prices by 4.1% from April 30th, thus cutting average bills by £28 annually. The Perth-based company added that it is guaranteeing its prices until at least July 2016.
SSE last cut household energy prices in March 2014. This latest reduction means a typical SSE gas bill in the UK will be 7% lower than at this time last year.
It is the fifth of the “big six” domestic gas suppliers to announce a discount – E.On is cutting prices by 3.5%, British Gas by 5%, Scottish Power by 4.8%, and Npower by 5.1%.
The only energy giant that has not reduced prices is EDF Energy, a subsidiary of Électricité de France. Most analysts predict it will announce its move this week.
Since the beginning of this year, five of the “big six” have announced price cuts.
The discounts follow a decline in wholesale natural gas prices of approximately 20% since November 2014.
SSE claims it is the only UK energy supplier with a 15-month price pledge for both electricity and gas.
SSE’s Director of GB Domestic, Steve Forbes said:
“We were the only supplier to freeze prices and we promised we would cut them if we could; now we’re delivering on that promise with an average £28 reduction in gas bills. Only SSE customers can bank on the fact that their standard energy prices won’t increase under any circumstances before July 2016.”
“Our prices are coming down, they’re staying down and we want to work with government to bring them down further.”
SSE says that by July 2016, its household energy prices will not have risen for more than 2.5 years – they will, in fact, have been reduced at least twice.
SSE added:
“SSE is also calling for political action to drive down the other rising costs which make up more than half of the bill, including government-sponsored environmental and social policies and its smart meter roll-out costs.”
UK’s domestic energy suppliers have been accused by consumer groups and politicians of responding rapidly when wholesale prices rise, but taking their time when they fall. They have been under intense pressure to respond more quickly.
