moneysupermarket.com: Scottish & Southern energy price cuts

Commenting on Scottish & Southern cutting electricity and gas prices by nine and four per cent respectively, Scott Byrom, utilities manager at moneysupermarket.com said: "Scottish & Southern has undercut British Gas in the energy price war stakes. As the second energy giant to cut prices for its nine million customers, effective 30 March, households with an average consumption can expect to see a £66 drop in their annual bill with standard prices falling to £1,193 a year. British Gas' new standard dual fuel price, effective 19 February is £1,245 per annum, £52 more expensive. However, British Gas' online tariff Websaver1, will still be the cheapest product on the market at £1,059 per annum.

"As far as bill payers are concerned, this drop does little to compensate for the record price increases of 2008 (47 per cent for gas and 28 per cent for electricity), and these are the prices they'll be paying for the heating used during the recent big freeze.

"Although a decrease is certainly a step in the right direction, British households have already paid through the nose for their winter energy consumption. Nevertheless this is a much needed cut that will help pressurised purse strings. Many consumers will hope that there will be further price cuts on the horizon and with four more energy giants to show their hand, we can expect more providers to respond with similar price cuts. It will also be interesting to see whether British Gas retaliates at some point with a further price drop to retain its crown as the UK's cheapest energy supplier.

"My advice to bill payers is to sit tight and see how the other energy giants react. During the re-shuffle of the energy market, consumers should arm themselves with information on their current provider, current tariff and also their consumption to make the right choice when looking for the best deal. There are definitely savings to be had and consumers should be proactive in looking to reduce the cost of their bills."