SSE has become the fifth of the countryís big six to announce price reductions in their energy tariffs, following the governmentís removal of green levies upon energy firms.
The company announced that their initial 8.2% rise would decrease to 3.5% effective from March 24, and has said that the savings will apply to customers on fixed and capped tariffs as well as their variable clients.
The reduction means that the average dual fuel customer with SSE will pay £1186 each year compared to £1224 before, and will benefit over 5 million people across the UK.
All customers will achieve receive the £12 tax rebate granted by the government, meaning that the average dual fuel customer with SSE will enjoy paying almost £50 less on their energy bill from March.
SSE also hit out a fellow ëbig sixí counterpart Scottish Power, who earlier this week announced that they would only be applying bill reductions for their customers on variable tariffs, and not those with fixed and capped deals.
The firm credibly kept their promise of passing on savings to all its customers and identified their belief that it is fundamentally unfair to not lower the bills of all the people registered with a service.
"We think it is totally unacceptable to penalise customers on fixed and capped price tariffs for their loyalty by excluding them from these cost savings," said Will Morris, retail director at SSE.
The company cited that rising network distribution costs and wholesale prices were the primary factors now left that had caused the 3.5% rise, but said that they didnít expect any further increases to take place this year.
Last week the Labour party hit out at SSE for taking so long to announce bill reductions, as British Gas had implemented thereís at the start of the year.
However, SSEís stance now appears justified, as it appears that the period of reflection has produced a decrease that is suited to all and is acceptably sized.
SSE also pointed out that whilst a provisional agreement had been reached about green levies, that these had yet to be confirmed and that taking time was necessary in order to determine the level of savings that are to be passed on.
"The Government is about to launch a consultation on changes to the ECO energy efficiency programme that are expected to cut the cost of the scheme considerably. A reduction in the expected level of electricity network charges is also in prospect," a statement from SSE read.
The news means that Npower remains as the only member of the ëbig sixí to make an announcement about passing on savings, though they are expected to do in the upcoming weeks.
SSE also hit out at the existing green levies left, arguing that none should be raised on energy companies at this current time.
A spokesperson read: "All government levies should be moved off bills so that they are paid for fairly and progressively and the fuel poor are better protected. Itís the right thing to do and has almost unanimous support from customers, charities and consumer groups," Mr Morris said. "Iím yet to hear a single convincing argument against it."
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