SSE reduces gas charges by more than 5 per cent

The new tariff is due to come into force at the end of March and makes SSE the second of the UK’s big six suppliers to announce price cuts this winter after E.On last week said it would cut gas prices by 5.1 per cent.

Both companies are only cutting gas, not electricity prices.

The move by SSE comes after it revealed that it had lost 300,000 customers in its trading update in the nine months to December.

However, it also said that it expects to deliver full-year earnings and dividend targets.

It is estimated the new gas reduction will save a typical customer £32 a year.

But while E.On’s customers will benefit from the price cut at the beginning of February, SSE’s new prices will not come into effect until 29 March.

The delay has drawn criticism as it means customers will not benefit during the winter season.

The big energy companies have been coming under pressure in recent weeks to cut prices in the wake of steep falls in the cost of wholesale gas and electricity over the past year.

SSE said it was more difficult to offer a reduction in electricity prices because they had not come down as much as gas and there were significant increases in other supply costs such as the modernising the UK’s transmission and distribution network.