Scottish and Southern Energy has announced that it is cutting its prices by an average of 4% or £32 for gas and 9% or £44 for electricity with effect from March 30 2009.
The price cut will not cancel out the effect of the price increases of 44% or £384 made in 2008. The average energy bill at the start of 2008 was £875, but after today's cuts it will be £1,193, 36% or £318 higher than it was a year ago.
The price decreases have followed an announcement by British Gas on 22nd January that it is cutting its gas prices by 10% or £88 from 19th February 2009.
If you have never switched before, or are sitting on an uncompetitive plan, my advice would be to give yourself a price cut today.
Ann Robinson - Director of Consumer Policy at uSwitch
The price cuts we are starting to see are unlikely to provide any relief for customers struggling to keep warm this winter. Ann Robinson, Director of Consumer Policy at uSwitch says, "What is becoming clear is that price cuts early in 2009 are not even going to dent the surface of the 42% or £381 hike in household energy bills we saw last year".
She added, "Consumers will be wondering where this leaves them. If you have never switched before, or are sitting on an uncompetitive standard plan, my advice would be to give yourself a price cut today. Move to dual fuel, pay by direct debit and sign up to an online plan so that you can enjoy lower prices straight away. Switching to a competitive plan could cut your energy bill by up to £350*".
* Between 1st January and 30th September 2008, at least 14% of people who switched dual fuel energy provider with uSwitch.com saved £350 or more.