ScottishPower will be opening up the scheme to any of its consumers over the age of 60 who receive social welfare benefit.
Willie MacDiarmid, retail director of ScottishPower, said the firm is also looking to spend £240 million over the next three years delivering social measures and energy efficiency programmes to consumers.
He added the new social tariff is just one part of the firm's approach to helping its vulnerable customers.
"We believe that discounted prices together with access to energy efficiency measures and benefits health checks, will provide customers with a sustainable approach to address each element known to contribute to fuel poverty," said Mr MacDiarmid.
ScottishPower recently launched a new interactive website to help consumers learn how to save money on their bills using simple energy efficiency measures.
Click here to run an energy price comparison, and see if you could be paying less for your gas and electricity.