Amid the gloom of the recession...at last, a cut in energy bills is in sight

Britain's second-biggest power supplier has promised to cut bills early next year in response to sharp falls in wholesale gas and electricity prices.

Scottish and Southern Energy, which is regularly among the cheapest suppliers, is the first to indicate a drop in tariffs.

The Bank of England’s Monetary Policy committee said yesterday that it is expecting price falls across the industry of 10 per cent – or around £140 a year.

Other analysts suggest there will be scope for even bigger reductions in 2009.

SSE’s move follows pressure from ministers, MPs and consumer groups who are angry at delays in passing on falls in wholesale prices to homes and businesses.

The wholesale price of gas has fallen by a third since its summer peak and electricity is down 28 per cent.

In a statement to the City, SSE said: ‘If wholesale prices for electricity and gas maintain a downward trend, SSE is optimistic that it will be able to deliver reduction in prices for domestic customers during the early part of 2009.’

Ann Robinson, of uSwitch.com, said: ‘This is welcome news indeed. However, I urge consumers not to become complacent about energy usage this winter because this is still not a done deal.’

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