Energy News

Scottish & Southern vows to undercut British Gas

Friday 06 January, 2009

By becca.talbot@consumerchoices.co.uk

Energy giant Scottish & Southern is cutting gas and electricity prices leaving, it says, dual fuel customers better off with them than British Gas.

Scottish & Southern Energy, the UK’s second largest energy supplier told its nine million customers today that the average cost of its gas would fall by 4% and its electricity by 9%.

The price cuts, which will come into effect on 30 March 2009, will reduce the average customer’s dual fuel bill by about £66 a year.

Ian Marchant, chief executive of Scottish & Southern Energy, said the company was considering slashing prices in November last year, following mounting public and consumer group pressure after oil and coal wholesale prices fell.

Scottish & Southern Energy said that it’s dual fuel customers would be 4% better off than British Gas’s from the middle of February*.

This morning the energy supply director at Scottish & Southern Energy, Alistair Phillips-Davies, said: “We know our customers want to understand what their energy is likely to cost in the future and that’s what lies behind today’s announcement.”

Consumer groups may be disappointed with the price cut however, which had been predicted to be at least 10%.

Last month, British Gas (www.britishgas.co.uk) said that it was cutting its gas prices by 10%.

The British Gas price cut will affect 7.5million of its customers, however a further 2.5million households locked into fixed energy tariffs will not feel the benefit of the reduction.

Chris Eagle, commercial manager at EnergyChoices.co.uk said: “For Scottish & Southern customers the latest price cut does little to compensate for the record price increases back in the summer last year.”

Eagle advises customers to watch and wait before deciding to switch energy suppliers: “Knowing when to switch energy suppliers can be tricky. Because four of the ‘big six’ suppliers have yet to announce price cuts, it is important you stay on top of the news and wait for further developments.”

* Based on the average “dual fuel” standard tariff bill paying by quarterly averaged across the UK and based on average domestic consumption (3,300 kWh electricity per annum and 20,500 kWh gas per annum). Excludes ‘prompt pay’ discount of 2.5%. Includes VAT at 5%. On this basis, SSE’s “dual fuel” domestic customers will pay £1,193 per annum from 30 March 2009; the equivalent for customers of British Gas from 19 February 2009 is £1,245.

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