The bill reduction will apply to all SSE's 9.5 million residential customers.
But it will only scale back the 8.2% average tariff hike that kicked in on November 15. It takes effect nearly three months after rival British Gas dropped prices in response to the Government's move to cut the cost of green levies on customer bills.
SSE's announcement follows ScottishPower's decision yesterday to reduce dual-fuel prices by 3.3% from January 31.
Npower is now the only "big six" provider not to reveal price changes, although it has pledged to cut prices.