Scottish and Southern Energy cutting prices will reduce fuel poverty

(19/02/2009)

SSE, which supplies energy as Southern Electric, SWALEC, Scottish Hydro Electric and Atlantic, is going to follow in the footsteps of British Gas who announced their price reductions at the end of January 2009. Following the price changes of 4% on Gas and 9% on electricity, SSE’s ‘dual fuel’ customers will typically see a reduction of £66 from their annual bills.

Fuel poverty charity National Energy Action (NEA) has welcomed the recent news that Scottish and Southern Energy plc (SSE) will reduce its prices for domestic electricity and gas customers. NEA calculates that this announcement will lift around 40,000 households out of fuel poverty.

Maria Wardrobe, Communications Director at NEA said, “We are pleased by the news that Scottish and Southern Energy is starting to cut prices, and we hope this is an indication of serious reductions by suppliers over the coming months, it is certainly a step in the right direction. This could make a significant impact on the debt and ill health suffered by those on low incomes who struggle to pay their heating bills, it is however a shame that customers will have to wait until the end of March to see the cuts.

“However, falling prices alone are not enough to end fuel poverty. Grants are available to vulnerable households to make homes more energy efficient and reduce bills. We are urging worried customers to ring the Home Heat Helpline on 080... to find out about what help is available to them. People can also make significant reductions in their energy use by making simple, cost-free changes in their homes.

“We’ll be looking for the remaining energy companies to follow suit now and reduce their gas and electric prices as soon as possible.”

SSE were the last of the major energy suppliers to raise prices in 2008, and did so in total by 45% on gas and 34% on electric.

The cost of wholesale gas is linked to the price of oil, which has fallen significantly from the peak it reached in summer 2008. A recent probe into the energy market by watchdog Ofgem, concluded there was no cartel operating in the market, but that the big energy companies can and must pass on the reduced costs to customers early in 2009.

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