Energy News

Scottish and Southern cuts gas prices

Friday, 5 March 2010

By Daniel Barnes- daniel@consumerchoices.co.uk

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Energy price cuts are coming for Scottish and Southern energy customers, as the energy price war hots up.

Scottish and Southern Energy (SSE) is cutting its gas prices from 29 March, making it around 5% cheaper than British Gas.

A typical customer’s gas bills should fall by 4% or £30, according to the energy suppler.

SSE – which provides gas and electricity as Southern Electric, SWALEC, Scottish Hydro and Atlantic – claims an average dual fuel energy customer will face annual charges of £1,162, following the price cut.

The firm is also making changes to extra charges that are levied on single fuel and pre-payment tariffs.

Single fuel customers should see a 7% cut to gas bills and prepayment customers should see a 9% price cut.

Alistair Phillips-Davies, SSE energy supply director, said: “Energy supply is still a challenging business, with significant upward price pressures which run counter to reductions in wholesale costs.

“We will do everything we can to make sure customers get value for money from energy supply, with energy efficiency and customer service continuing to be top priorities.”

However, customers using low amounts of gas may not feel the full benefit of the price cut.

SSE is increasing its fixed charges to £98, which the firm claims will make it easier for energy price comparisons.

David Hunter, energy analyst from consultancy McKinnon & Clarke, said: “This 4% on gas alone is well short of a fair deal for customers.

“Even after this small cut, SSE's gas prices are 37% higher than at the start of 2008 - and electricity is almost a quarter dearer.”

He added there was disappointment that the cut in prices have come once the peak heating season is over.

Chris Eagle, commercial manager at Energychoices.co.uk, said: “The gap between wholesale gas prices and domestic prices remains wide, so the price cuts we have seen from SSE, British Gas and First Utility may seem small.

“Energy firms claim their overheads are growing with the increased demands for investment in environmental programmes. For consumers the best option is to shop around to find the best energy deal, grab a dual fuel online deal and pay by direct debit for an extra discount.”