TWO of the UK's major energy suppliers have cut their prices a day after one of their rivals became the first of the big six to reduce tariffs.
British Gas, which includes Scottish Gas, cut bills for more than five million customers by announcing an average 5% drop in its standard electricity tariff. The price cut will take effect immediately and will knock £24 from the average bill – six months after the Centrica-owned company increased gas bills by 18% and electricity by 16% in August.
SSE is to cut the price of household gas by 4.5% from March 26, saying the drop in price took into account lower wholesale prices. The moves follow an announcement on Wednesday by French-owned rival EDF to reduce gas prices by 5%.
Norman Kerr, director of fuel poverty charity Energy Action Scotland, said Scottish Gas's move would bring "welcome relief" to customers. He said: "It's hoped that this will set the trend for more energy price cuts. This move also might start to restore customer confidence in how the energy markets work."
All the big six major suppliers increased prices over the summer.
British Gas claimed the price reduction will save customers more than £100 million in reduced bills.
However, Ann Robinson, director of consumer policy at uSwitch, said it was dis-appointing that no suppliers had announced cuts for both gas and electricity. She added: "The bottom line for consumers is that these cuts will go nowhere near cancelling out the £224 hike in prices they've seen in the last 18 months."
