SSE has become the first big six energy supplier to announce price decreases following Ofgem’s announcement to lower the price cap.
The regulator recently announced the cap on default tariffs will be lowered by £75 on 1 October to £1,179 due to a fall in wholesale costs.
Meanwhile, the cap for pre-payment meter (PPM) customers will decrease by £25 to £1,217.
Following this SSE customers on the supplier’s standard tariffs will pay a typical bill of £1,178.58 which is 32p lower than the cap, while PPM customers will pay £1,216.90 – 10p lower than the PPM cap.
SSE did however warn that while a majority of its customers will see a reduction in their tariff, some very low usage customers may see an increase due to changes in the level of the price cap’s standing charge rates.
The energy giant has also announced that it will be reducing the cost of its bundled costs bought from today (21 August), with an average user on Fix and Fibre (energy, phone and broadband bundle) seeing an £87 reduction while Fix and Protect customers (energy and boiler cover) will see a reduction of £74.
Furthermore exit fees on most new energy tariffs launched either on or after today will not apply.
Last week news broke of a potentially game-changing deal between medium sized retailer Ovo Energy and SSE’s retail arm.
If successful this would see Ovo buy the retail arm for a reported £250 million, jump forward several places and sit as the second largest supplier, second only to Centrica-owned British Gas.