SSE to cut gas prices
29/01/2015
Another energy supplier has announced that it will be cutting gas prices in the wake of falling wholesale costs.
SSE, the UK’s second biggest energy supplier, will be cutting gas prices by 5.3% this spring. The move is expected to save customers an average of £32 a year on bills, and will take effect from the 29th March. The company is now open to criticism on the timing, as customers will not benefit from price cuts during the winter season when they use the most energy.
SSE follows energy company E.On, who announced last week that it will be cutting prices by 5.1%. Both companies will only be reducing prices on gas, not electricity.
Over the past year the cost of wholesale gas and electricity has fallen by 23%, leading to increase pressure on the UK’s “big six” energy suppliers to cut prices for customers. The remaining suppliers, British Gas, EDF Energy, Npower and Scottish Power are expected to make similar announcements in the near future.
Will Morris, the managing director of retail at SSE said:
“Wholesale energy prices account for an ever-smaller proportion of the bill and there are different cost issues affecting electricity and gas.”
The Energy Secretary, Amber Rudd, said:
“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.”
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