Scottish and Southern Energy cut energy prices

Scottish and Southern Energy will reduce its prices for domestic electricity and gas customers on 30 March 2009. Average prices for electricity customers will fall by 9% and for gas customers they will fall by 4%.

The falls in wholesale energy prices which started between July and October 2008 have been maintained and mean SSE, which supplies energy as Southern Electric, SWALEC, Scottish Hydro Electric and Atlantic, is able to deliver its first cut in domestic energy prices since March 2007. It was the last of the major suppliers to introduce a price increase in the early part of 2008.

Although they have fallen recently, forward annual wholesale prices for electricity and gas remain at relatively high levels, being 46% and 51% respectively higher in January 2009, compared with January 2007.

Following the price changes, SSE’s ‘dual fuel’ customers will typically pay £1,193 per annum for their energy, a reduction of £66. This is 10% less than that currently paid by customers of British Gas and 4% less than customers of British Gas will pay from the second half of February.

Alistair Phillips-Davies, Energy Supply Director of SSE, said: "We know our customers want to understand what their energy is likely to cost in the future and that’s what lies behind today’s announcement.The UK now relies on energy imports and wholesale prices for electricity and gas are still at historically high levels. Against this background, companies need to be successful in fuel procurement, product development and customer service to deliver the best possible value for customers, and that’s what we work to deliver.”