31st Jan 2007 10:21
Scottish & Southern Energy PLC31 January 2007 PRICES FOR ELECTRICITY AND GAS TO FALL Scottish and Southern Energy plc ("SSE"), currently the UK's cheapest gas anddual fuel (gas plus electricity)*, has written to its seven million domesticcustomers to confirm that it will cut gas and electricity prices within the nextfew months. It will be the first such reduction for six years. SSE, which supplies energy as Southern Electric, SWALEC, Scottish Hydro Electricand Atlantic Electric and Gas, has made the decision in light of the sustainedfall in wholesale prices which has occurred since it last announced an increasein prices, in September 2006. During the three years of rising wholesale energy prices, SSE passed on to itscustomers much less than the full extent of the increases and it delayed anyprice rises for as long as possible. As a result, its customers have paid anaverage of £320* less for their gas and electricity in the last three years thanhave customers of British Gas. Customers of SSE are still paying around 14%*less for their combined gas and electricity than are customers of British Gas. Earlier this month, SSE announced plans to increase its early payment discountfor people paying their bills quarterly to 4.3%. It is one of just two energysuppliers to reward its customers in this way. Alistair Phillips-Davies, Energy Supply Director of SSE, said: "Since last September, we have made clear our intention to cut gas andelectricity prices if there was a sustained fall in wholesale prices which wouldallow us to do so, and I am very pleased that we have now been able to confirmthis. "We are now monitoring costs and evaluating how we will be able to pass savingson to customers. In the meantime, our customers know they paid on average around£320* less for their gas and electricity than customers of British Gas didduring the period of rising prices. Our policy of fair pricing will continue. Future trends in the wholesale price of any commodity are always difficult topredict, and gas and electricity are no exception, but I hope that we will see asustained downward trend in the prices paid by our customers." * Based on an average over the 14 supply areas for a dual fuel customerconsuming 20,500kWh of gas per annum, and 3,300kWh of electricity per annum andpaying quarterly. Prices include VAT. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
SSE