SSE cuts gas prices 5.3 per cent

SSE became the latest big six energy supplier to cut its gas prices today, announcing an average 5.3 per cent reduction in its standard tariff, effective from March 29.

It follows Eon’s 5.1 per cent cut, announced last week. Both suppliers are responding to calls from the energy secretary Amber Rudd, Ofgem chief executive Dermot Nolan and consumer bodies to cut prices in response to falling wholesale costs.

SSE said the reduction will save a typical household gas customer on its standard tariff £32 a year.

SSE’s managing director, retail, Will Morris said: “When we announced our price freeze, we promised that we would not increase prices but would cut them if we could – and that’s exactly what we’ve done. This is our third successive reduction in household gas prices and shows our commitment to getting prices as low as we can and to fight for customers in a fiercely competitive market.

“Wholesale energy prices account for an ever-smaller proportion of the bill and there are different cost issues affecting electricity and gas, but I am pleased that we will be able to bring down gas prices three months before our current price freeze is due to end.

“Price is clearly important to customers but so is customer service and we continue to invest in this area. We’re proud to have a great track record in the industry when it comes to complaints according to Citizens Advice and look forward to driving further improvements in the year ahead.”

SSE also issued a trading statement today, covering the nine months to December 2015. There were no major changes in outlook, and the company reconfirmed its 115p target for adjusted earnings per share and a dividend increase target of at least RPI for 2015-16.