Passing on savings to customers
Today we’ve announced our third successive price cut in two years, putting pounds back into the pockets of our customers with a 5.3% reduction in our domestic gas prices – a saving of £32.80 on the average bill.
I’m delighted we’re once again able to lower our prices and pass on savings. Our customers are now paying 12%, or £79 less than 2013 levels* with a typical dual fuel direct debit bill now £1,068 compared with £1,162 in November 2013*.
Back in 2014 we led the market when in the face of rising prices we cut ours and announced that we were freezing them to ease the pressure on British bill-payers. At the time we said if we could reduce prices further we would. And we did. We cut them in April 2015 and once again we are keeping our promise.
There’s been widespread media coverage of the falling cost of buying gas and electricity on the wholesale market. We are now seeing the impact of this feeding through to us and that’s why we’re now able to pass it on.
But we understand some customers may be wondering why we haven’t been able to make a bigger reduction or reduce our electricity prices. The reality is that wholesale energy prices account for an ever-smaller proportion of the overall bill – less than 50%. And while gas prices have fallen, electricity wholesale prices haven’t reduced as much.
We are also seeing increases in other costs connected with electricity such as levies that fund the much needed improvements in infrastructure like the Government’s smart metering programme. To help offer a fairer playing field we believe these costs should be spread across gas and electricity customers and are making this case.
We believe in fair, stable prices combined with excellent customer service and compelling products. We’re offering new energy tariffs, exciting deals in broadband and home services such as our Shield boiler care not to mention unrivalled access to entertainment across the UK.
We’re also investing in new customer service systems to make sure our customers are given all the help and support that they might need in the 21st century not to mention the major improvement programme to roll out smart meters to every home in Britain which will help customers take control of their energy use.
At the heart of everything we do is a desire to make a difference to our customers. Today’s price reduction is the latest example of SSE’s continued commitment to put customers first and deliver high quality essential services to homes across the country.
*Based on Ofgem standard annual consumption of 3,100 KWh for electricity and 12,500 KWh for gas, adopted on 28 May 2015, averaged across payment method unless stated otherwise.