Scottish and Southern Energy (SSE) will cut its gas bills for some customers by 4% from the end of March.
The UK’s second-largest energy supplier is cutting standard dual fuel gas prices from 29 March 2010. This should shave £30 off the average annual dual fuel bill.
Last month, British Gas announced a 7% reduction in gas bills. So far, SSE is the only supplier to follow suit.
Alistair Phillips-Davies, energy supply director at SSE, says: "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."
Last year, SSE cut gas bills by 4% and electricity bills by 9%. However, this followed hikes of 45% (gas) and 33% (electricity) in 2008.
Ann Robinson, director of consumer policy at uSwitch.com, says: “The fact that the country’s two biggest suppliers have acted to bring their prices down will put more pressure on the remaining four suppliers to do the same, but there are still no guarantees.”
Scott Byrom, utilities manager at moneysupermarket.com, adds: "With all the talk of providers not passing on savings in line with wholesale gas price falls, SSE's customers may rejoice that their gas bills will be cut - but what a pity it's only by £2.50 a month."