Scottish and Southern Energy (SSE) announced it is cutting average electricity prices for its nine million domestic customers.
The firm will drop electricity prices by nine per cent and reduce the price of gas by four per cent from March 30th.
SSE's proposed price reduction will leave energy prices for its customers higher than last year with the cost of electricity and gas climbing by 19.2 and 29.2 per cent respectively in 2008.
A spokesperson from Consumer Focus said: "We welcome any benefits to consumers but are disappointed by todays announcement.
"SSE customers still have to wait five weeks before the price cuts take effect."
The spokesperson added that the reduction comes just days before the big six energy suppliers go before a select committee to be questioned about their energy prices.
Earlier this week, a report from the Organisation for Economic Co-operation and Development showed UK energy prices rose by an average of 12.1 per cent last year.
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