The freeze will affect 5 million UK households, and will be financed by £100m of cost-cutting measures, including 500 job losses.
The UK’s second-largest electricity and gas supplier, Scottish & Southern Energy, has announced the domestic energy sector’s longest ever ‘unconditional price promise’ at 26 months, having last raised its prices in November 2013.
The company says the move will be financed by £100m of cost-cutting measures, including 500 job cuts and scrapping offshore wind farm developments.
SSE said it did not have “sufficient confidence in the viability of the wider offshore wind sector” to continue with its offshore plans, and will instead sell its stakes in developments to generate funds.
The company was however, keen to stress that it will still be investing around £4m per day in 2014/15 in Great Britain & Ireland, a total of around £1.6bn.
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In a related move, SSE will split its wholesale and retail arms into separate businesses, to facilitate transparency. The organisation believes “more needs to be done to make the energy sector easier to understand” and this will play a role in making that process easier.
Alistair Phillips-Davies, Chief Executive of SSE, said: “With today’s announcements we’re recognising that delivering the lowest possible energy prices for our customers has to be central to everything we do.”
Read the official announcement on SSE’s website.