This article is from the source 'bbc' and was first published or seen on . It will not be checked again for changes.
You can find the current article at its original source at http://news.bbc.co.uk/go/rss/-/1/hi/business/7873895.stm
The article has changed 4 times. There is an RSS feed of changes available.
Version 2 | Version 3 |
---|---|
Scottish and Southern cuts prices | Scottish and Southern cuts prices |
(about 3 hours later) | |
Scottish and Southern Energy (SSE) has said it will cut prices for electricity and gas customers from 30 March. | Scottish and Southern Energy (SSE) has said it will cut prices for electricity and gas customers from 30 March. |
It said average prices for electricity customers would fall by 9% and average gas bills would be trimmed by 4% - the first price cut since March 2007. | It said average prices for electricity customers would fall by 9% and average gas bills would be trimmed by 4% - the first price cut since March 2007. |
The firm also supplies energy under the brand names Southern Electric, Swalec, Scottish Hydro Electric and Atlantic. | The firm also supplies energy under the brand names Southern Electric, Swalec, Scottish Hydro Electric and Atlantic. |
The announcement followed the decision by British Gas to cut gas bills by 10% from 19 February. | The announcement followed the decision by British Gas to cut gas bills by 10% from 19 February. |
"Dual fuel" customers would see an average annual saving of £66, the company said. | "Dual fuel" customers would see an average annual saving of £66, the company said. |
SSE said that the falls in energy prices on wholesale markets had been maintained, allowing it to deliver a price cut. | SSE said that the falls in energy prices on wholesale markets had been maintained, allowing it to deliver a price cut. |
However, the firm warned that prices remain at relatively high levels. | However, the firm warned that prices remain at relatively high levels. |
Electricity and gas prices are still 46% and 51% higher than two years ago, it said. | Electricity and gas prices are still 46% and 51% higher than two years ago, it said. |
"The UK now relies on energy imports and wholesale prices for electricity and gas are still at historically high levels," said Alistair Phillips-Davies, SSE's energy supply director. | "The UK now relies on energy imports and wholesale prices for electricity and gas are still at historically high levels," said Alistair Phillips-Davies, SSE's energy supply director. |
Price war | |
At the end of last year the "big six" energy companies were urged by the government to pass on lower wholesale gas prices. | At the end of last year the "big six" energy companies were urged by the government to pass on lower wholesale gas prices. |
Scottish and Southern said that customers on its dual fuel tariff would pay 10% less than British Gas customers before its rival's price reduction on 19 February, and 4% less after. | Scottish and Southern said that customers on its dual fuel tariff would pay 10% less than British Gas customers before its rival's price reduction on 19 February, and 4% less after. |
However, British Gas called Scottish and Southern's comparison "disingenuous" and urged its competitor to clarify its figures. | |
Phil Bentley, managing director of British Gas, said: "We are disappointed by the way SSE has compared its new prices with our old prices, creating a price difference that will never exist - especially as our price cut takes effect on 19 February, and the SSE cut does not apply until 30 March." |