SSE has 3.5 million gas customers. Like British Gas, SSE said the way it bought gas on the forward market, rather than buying it a day ahead, meant it could not afford to cut prices immediately. Once that gas, bought at a time when wholesale gas prices were higher, has been used up, customers will pay less for wholesale gas bought after prices started to come down.
The company said from next week it will publish a full breakdown of all the costs that make up a customers bill in advance of that breakdown appearing on bills later in the year.
The price cut kicks in on 26 March. The firm said it will offer a fixed price three year deal for customers on the same day at a 4 per cent premium to its standard price units.