Today SSE slashed the number of tariffs it offers to new customers from more than 40 to four. The energy supplier is introducing two variable and two fixed tariffs.

It had already cut the number of tariffs down by a quarter last October.

The energy market is undergoing several changes to increase transparency for consumers, driven by Government and the industry watchdog Ofgem, which today also announced plans to force the Big Six to make room for independent suppliers.

SSE says it will now be easier for customers to compare tariffs and so easier to pick the cheapest option.

The supplier denied shrinking the number of tariffs would mean a lack of choice.

Alistair Phillips-Davies, Generation and Supply Director at SSE said: “Buying energy has become too complex. Energy customers want choice but most customers have a straightforward set of requirements and when they look at the products offered by an energy supplier, it should be easy for them to find out which is the best deal for them.”

He criticised the example of other firms who have begun to offer a single tariff: “This kind of simplicity can actually be detrimental to customers. Some suppliers have already chosen to only offer one product and in doing so excluded millions of customers who wish to have a choice of payment method or don’t want to buy their product online.”

Customers will be able to “tailor” their payment plans with a range of free ‘optional add-ons’, said the supplier.

SSE supplies energy through five major brands – Southern Electric, Scottish Hydro, SWALEC, Atlantic and SSE.