SSE has announced that it will decrease the cost of gas for their standard tariff customers. An average price decrease of 5.3% will save SSE gas medium users an average of £32 a year.
The price drop comes in to play at the end of March, with many critics questioning whether this is enough and if it comes at the right time, after winter has ended.
The “Big 6” energy suppliers have been under immense pressure to drop energy costs, in line with the wholesale prices that continue to downward spiral. SSE’s announcement follows E.ON price reduction last week.
Of today’s announcement, Energy and Climate Change Secretary, Amber Rudd, said
“I’m absolutely clear that the market must provide a fair deal for consumers and that’s why I’ve been pressing energy companies to put their customers first and pass on savings to them.
SSE has taken a step in the right direction and I urge other suppliers to follow suit.
The Government is also taking action to keep bills low by making it easier and quicker to switch, rolling out smart meters to every home and business, and increasing competition in the energy market.”
Dermot Nolan, Chief Executive of Energy Regulator OFGEM, said:
“This is a move in the right direction, but if the market is as competitive as suppliers claim, we would expect to see further price cuts.”
However, these welcomed price cuts do not fall in line with the dropping wholesale cost of gas, which in the last year has fallen more than 30%.
On the same day that SSE announced a price cut, they all announced a loss of 300,000 in the first nine months of the financial year, but it maintained its dividend and earnings per share targets for the full year.
SSE’s has said that their customer accounts fell to 8.28 million as of Dec. 31. This has been put down to reflecting a wider trend of British energy users switching away from the largest energy providers for more competitive prices.