Scottish and Southern Energy (SSE) is dropping its gas prices by 4% from 29 March, saving the average family £30 a year.

"SSE will introduce a package of changes in prices for household gas supply from 29 March 2010 under which it will cut unit prices, adjust the 'fixed' charge element in bills and remove the extra charges levied on its 'single fuel' and pre-payment tariffs compared with standard credit tariffs," read a statement Thursday.

A typical customer using the industry standard amount of gas on a single fuel contract will see their gas bill fall by 7% or £56, while pre-payment customers will pay 9%, or £70, less than before.

SSE, the UK's second largest energy supplier, claims that its customers will pay around 5% less for their gas than those using British Gas.

"Energy supply is still a challenging business, with significant upward price pressures which run counter to reductions in wholesale costs, but we believe this is a responsible package of measures which confirms that SSE is one of the country's most competitive energy suppliers," said Alistair Phillips-Davies, energy supply director.

"We will do everything we can to make sure customers get value for money from energy supply, with energy efficiency and customer service continuing to be top priorities."

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