ScottishPower has announced that it is to cut prices by an average of 7.5% or £68 for gas and 3% or £14 for electricity, which will reduce the average electricity bill by £83.
The price cut, which will come into effect on 31st March 2009, is the fifth to be announced, but only British Gas customers have actually seen the reduction in their prices take effect.
Will Marples, energy expert at uSwitch.com, says: "British Gas laid down the gauntlet yesterday when it pointed out that it was still the only supplier to have actually cut prices for customers whereas other suppliers' reductions are yet to come into effect. It's still the case today with ScottishPower, but it does mean that its customers are one step closer to lower prices.
Price cuts so far are averaging out at 4.6% or £60 - realistically these will only make a small dent in household energy bills.
Will Marples - uSwitch Energy Expert
"Consumers are getting nearer to the point when they will benefit from lower wholesale energy prices, but it is taking time and price cuts so far are averaging out at 4.6% or £60 - realistically these will only make a small dent in household energy bills.
"Consumers should be thinking of giving themselves 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."
The price cuts mean that the average household dual fuel bill for a ScottishPower customer will fall from £1,369 to £1,286. This is £327 or 34% higher than its average bill of £959 in January 2008.