SSE has announced that it will freeze its domestic gas and electricity prices until 2016.
The big six energy supplier revealed that the move would reduce its profits. As a result it has said around 500 jobs will be cut, and plans to construct three offshore wind farms postponed to make up for the expected shortfall. With the cuts, SSE has revealed that it expects to reduce annual operational costs by £100 million.
For customers, the freeze will ensure that their energy bills remain at a consistent rate for two years.
Chief executive at SSE, Alistair Phillips-Davies, spoke about the decision to freeze its prices.
He commented that "delivering the lowest possible energy prices" to energy customers was "central to everything we do," going on to tell the BBC: "One of the biggest concerns they (customers) have is that energy prices may well be going up again.
"The most important thing for our customers over the next couple of years is freezing prices."
SSE was among a number of big six energy suppliers to implement price increases last winter (2013), increasing electricity and gas prices on average by 8.2 per cent.
Ed Davey, energy secretary, said that the move represented a positive step. He said: "This shows that the big six are starting to realise they need to take big action if they want to keep their customers, who have been switching suppliers in record numbers.
"SSE have shown today that the big energy firms are able to cut their costs and profits, and be confident about their ability to weather potential uncertainty in the wholesale markets, to give bill payers long-term price security."
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