Price cut by Scottish and Southern Energy (SSE)

Scottish and Southern Energy (SSE) announced that they would cut prices for electricity and gas customers from 30 March. The company stated that 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.

Scottish and Southern 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. "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. 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.

"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.

At the end of last year the "big six" energy companies were urged by the government to pass on lower wholesale gas prices.