SSE joins in with the energy price cuts

26 January 2015

sse SSE have become the latest energy company to announce a price cut.

The company become the fifth of 'The Big Six' energy firms to have announced a reduction in their price cuts, following recent moves by the likes of E.On, British Gas, Scottish Power and Npower.

Now they're all staring at EDF to follow suit.

SSE will cut domestic gas prices by 4.1% from 30th April, which should save their average households around £28 a year. Whoop. They'll be mindful that they've got to win people over after it was revealed that Ofgem are investigating them.

SSE - who have around 8.7 million customers - have also said it would extend its guarantee not to increase its gas and electricity prices until July 2016, and that wholesale energy costs now make up "less than half of the typical household energy bill".

Steve Forbes, SSE's director of GB Domestic, 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."

"There are significant other costs within energy bills, including those relating to government-sponsored environmental and social policies and the roll-out of smart meters."

Chipping in, Alistair Phillips-Davies, SSE's chief executive, said: "Customers are at the heart of SSE's business, and our work to secure their energy supplies in wholesale markets last spring enabled us to guarantee that prices would not increase until at least January 2016, showing we are committed to treating all of our customers fairly and to giving them stable prices over the long-term."

"We're being true to that commitment with a 4.1% reduction in the typical gas bill and an extended guarantee meaning gas and electricity prices won't go up before July 2016 at the earliest.

SSE reckon the prolonged period of mild weather to 31 December 2014 meant that average consumption of electricity was estimated to have fallen by 5.6% while average consumption of gas dropped by almost 16%.

This ongoing set of price tumbles is responding to politicians and general "stop charging so much" level headed humans as well as due to the reduction in oil and gas prices. For that reason, the energy industry is undergoing a full scale inquiry from the Competition and Markets Authority (CMA) into the way it operates. The CMA inquiry is expected to report its provisional findings in May or June.

TOPICS:   Utilities

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