SSE Promises to Cut Gas Prices by 4.1% from April

January 27, 2015

SSE has promised to cut the price to customers of its domestic gas supplies by 4.1 per cent from April 30th, which could lead to significant savings for tens of thousands of households across Scotland.

Keeping up with energy bills can be a real problem for anyone tackling serious personal debt problems and relentless demands for payments from creditors so SSE’s price-cutting plans are sure to come as welcome news to many.

SSE is based in the Scottish city of Perth and was known until 2010 as Scottish and Southern Energy. The business is counted as one of the so-called ‘Big Six’ energy suppliers that dominate the market for household gas and electricity supplies around the UK.

E.ON, Scottish Power, Npower and British Gas, as well as SSE, have all now made promises to reduce household gas charges as a result of falling costs associated with wholesale gas prices around the world. The only one of the Big Six yet to make any such pledge is EDF.

SSE, which provides certain services under different brand names including Swalec, Scottish Hydro and Southern Electric, has also said that it will not now increase its prices for gas to its customers until July 2016 at the earliest.

“We were the only supplier to freeze prices and we promised we would cut them if we could; now we’re delivering on that promise with an average £28 reduction in gas bills,” said Steve Forbes, SSE’s director of domestic supplies in Great Britain.

Around 3 million SSE customers who currently pay their gas bills on the basis of dual-fuel or gas-only tariffs are expected to benefit directly from the changes to the company’s pricing policies. There are around 8.7 million people around the UK who currently receive their electricity and gas supplies from SSE.

SSE’s promise to cut its gas prices by 4.1 per cent from April is potentially good news for thousands of hard-pressed families in Scotland but Npower, Scottish Power and British Gas are all promising to introduce bigger cuts and to do so in January or February of this year. Although, SSE’s planned price reduction does trump E.On’s promise to trim its gas price by 3.5 per cent.

According to SSE, its price cuts have had to be delayed because it bought large quantities of gas on a wholesale basis several years ago in order to be sure of affording its planned price freezes that will now run until 2016.

Gillian Guy, chief executive of Citizens Advice, welcomed SSE’s price cuts announcement but described the move as “a long time coming” and called for EDF to follow its Big Six competitors and offer reductions to household gas bills as well.

John Baird

Insolvency Adviser

Tel: 0800 063 9250

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