SSE customers will see gas prices fall by 5.3% from 29 March, as the provider has become the second of the big six energy companies to announce price cuts.
But you can save hundreds more by switching, as we explain below.
The move follows hot on the heels of fellow big six provider E.on, which announced earlier this month that it will cut gas prices by 5.1% from 1 February. See our E.on to cut gas prices by 5.1% news story for more on this.
Who does SSE’s price cut apply to?
The price reduction will apply to those on SSE’s standard variable tariff, including prepaid customers who pay for their energy via a meter.
M&S Energy customers, whose energy is supplied by SSE, will also see the price cut.
However, customers with a fixed tariff will not see prices fall, and Ebico customers, which is another energy company SSE supplies the gas and electricity for, will also be left out of the price drop.
SSE’s standard variable prices have been frozen since March 2014 and are due to remain so until July 2016. The freeze means SSE prevents prices from rising, but allows prices to be cut.
‘We would expect to see further price cuts’
Dermot Nolan, chief executive of energy regulator Ofgem, says: "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.
“Ofgem referred the market to the Competition and Markets Authority (CMA) because we feel competition is not bearing down fast or hard enough on consumers’ bills."
You can save hundreds more by switching
SSE says its price reduction will see customers save £32/year, taking its typical standard variable price for those who pay by direct debit to £1,068/year.
However, the cheapest energy tariff on the market for those who pay by monthly direct debit is currently £768/year, according to price comparison site Energyhelpline. So you could save £300 more by switching.
Remember, the price you pay for energy depends on how much you use and on where you live. Use our Energy comparison tool to find out the cheapest tariff for you.
Mark Todd, co-founder of Energyhelpline says: “SSE’s promise of gas price cuts of 5.3% at the end of March is another token gesture following the 50% collapse in wholesale prices that suppliers pay.
“What’s even more disappointing is that taking two months to come in, winter will be well gone before any SSE customer sees the benefit.
"A domino effect onto other suppliers is likely to follow but judging by the pace of change so far, we shouldn’t expect anything big! While this may look like a price war, these small cuts are to horrendously over priced standard tariffs – it’s a phoney war and these tariffs are best avoided."