Lower bills for customers
Scottish Hydro unveils 5.3% cut in price of gas
The cut follows the loss of 300,000 electricity and gas customers over nine months to 8.28 million amid a general industry drift towards smaller energy suppliers.
Gas prices will fall from 29 March and will save a typical household gas customer on the standard tariff £32 a year. It is the company’s third gas price cut in two years when it announced a unique price freeze in March 2014.
SSE customers have not seen an energy price increase since November 2013 and the company said the new gas prices will be 12%, or £78 lower for an average customer than in 2013. A typical dual fuel direct debit bill on the company’s standard tariff will be £1,068 compared with £1,162 in November 2013.
The company said Westminster’s closure of the Renewables Obligation subsidy for new onshore wind projects from March this year will affect SSE’s remaining onshore wind development pipeline.
“Following the pragmatic approach taken by the UK Government to grace periods, SSE expects to construct around 400MW of onshore renewable energy under the RO, subject to the Parliamentary passage of the legislation,” it said.
Following the Government’s decision in December to no longer fund a carbon capture and storage demonstration project, SSE said is unlikely to proceed further with the proposed project at Peterhead power station.
Alistair Phillips-Davies, chief executive, said: “I am pleased that we have been able to announce a reduction in retail gas prices – our third consecutive reduction in household energy prices – and to achieve a significant reduction in the number and duration of power cuts experienced by our networks customers.
“Market conditions, however, continue to be challenging. Nevertheless, SSE remains a resilient and diverse business, with a strong commitment to operational efficiency and delivering value for customers and investors. It remains firmly focussed on delivering this year’s financial objectives and making sure that the business is fully prepared for the future.”
SSE will publish its full year results for the financial year ending 31 March on 18 May.