Perth-based energy giant SSE said on Friday said it will not increase standard household energy prices this winter, capping them at their current level until at least April 2017.
Analysts said the decision puts pressure on SSE’s rivals like Iberdrola’s Scottish Power, RWE’s npower, Centrica’s British Gas, EDF Energy and E.ON and freeze their prices.
UK household energy bills have roughly doubled over the past 10 years to an average of around £1,200 a year.
The UK government has said it might take action if prices are too high.
British wholesale gas and electricity prices have soared between 30% and 40% since early summer — prompting fears some suppliers might raise prices.
Will Morris, Managing Director, Retail, at SSE, said: “We understand that the prospect of increasing bills during the colder months is a real concern for customers, particularly as they start to turn up the heating.
“So today we’re giving them peace of mind that no matter what happens we will not increase our standard household energy prices during the winter, until at least next April.
“This follows our unique two and a half year price freeze in March 2014, since which time we’ve also cut prices three times for our standard customers as we work to keep prices as low as possible for as long as possible.
“No-one should be faced with the prospect of a cold home this winter.”