SSE Airtricity has announced its second price cut in the space of three months.

The move, coming from one of Ireland’s four main energy companies, could spark a price war in the energy market.

In a statement this morning, SSE Airtricity said it was reducing its electricity prices by 12.8% and its gas prices by 11.5%.

It’s standing charges are to remain unchanged.

The cuts come just months after the company announced a 12% reduction in electricity prices, which took effect from November 1st.

It follows the cuts announced by new player Yuno Energy towards the end of November and experts now believe the other main players in the market will have to respond with cuts of their own.

SSE Airtricity Managing Director Klair Neenan said the cuts will mean customer prices have fallen almost 20% since the summer.

“We’re really happy to announce a further price decrease for our customers today, in what we hope is welcome news,” she said.

“As a company we’ve stayed true to our word and we continue to pass on savings to customers at the earliest possible opportunity.”

When the cuts come into force, SSE Airtricity said the average dual fuel customer will be saving €376.36 per year, including VAT.