Energy firm SSE announces 5.3% average gas price cut

British energy firm SSE has announced it is cutting domestic gas prices from the end of March.

The company said it would slash prices in Britain by an average of 5.3% on standard tariffs from March 29.

It said the cut will save household gas customers on average of £32 a year.

Will Morris, the group managing director of retail at SSE, said they were committed to cutting prices in a "fiercely competitive market".

“When we announced our price freeze, we promised that we would not increase prices but would cut them if we could – and that’s exactly what we’ve done," he said.

Dermot Nolan, chief executive of energy watchdog Ofgem, said: "This is a move in the right direction, but if the market is as competitive as suppliers claim, we would expect to see further price cuts."

The move follows an announcement last week by E.ON that it would cut its standard gas price by an average of 5.1%.

Ofgem has referred the market to the competition watchdog, however, saying that it does not believe the market is leading to enough downward pressures on consumers' bills.

Energy and Climate Change Secretary Amber Rudd today urged other companies to follow SSE is dropping prices.

Money saving expert Martin Lewis described the price cut as "trivial".

He predicted that the rest of the "Big Six" energy firms would soon follow suit but said the cut was "nothing close to the drop in wholesale prices".

Reacting to the SSE announcement, Ms Rudd said: “I’m absolutely clear that the market must provide a fair deal for consumers and that’s why I’ve been pressing energy companies to put their customers first and pass on savings to them.

"SSE has taken a step in the right direction and I urge other suppliers to follow suit."

“The Government is also taking action to keep bills low by making it easier and quicker to switch, rolling out smart meters to every home and business, and increasing competition in the energy market".