Scottish & Southern Cuts Energy Bills for the New Year
Here's an early Christmas present to British households struggling with gas and energy bills this winter: Britain's 2nd largest Energy provider Scottish & Southern (Stock Quote: SSE) has announced intentions to reduce fuel costs for consumers in early 2009 if falling oil prices continue to
stay low. SSE stated:
‘If wholesale prices for electricity and gas maintain a downward trend, SSE is optimistic that it will be able to deliver reduction in prices for domestic customers during the early part of 2009.’
SSE actually raised electricity prices by an average of 19.2% and gas by 29.1% in August, as oil began to decline. However, because energy suppliers buy gas and electricity through long and short-term contracts, there is a time lag before consumer prices reflect wholesale prices, meaning consumers don’t see the savings right away.
Despite reporting that their profits have decreased by more than 50%, pressure from ministers and consumer groups to ensure that consumers benefit from the drop in oil prices may have played a part in the decision.