British Gas slashes prices by an average 7%
British Gas slashes prices by an average 7%
Friday 5th February 2010
The largest energy supplier to homes in the UK, British Gas, has today announced it will be cutting prices to the average household by seven per cent.The price cut will be taken with immediate effect, the gas supplier said, and will benefit as many as eight million households across the UK, saving the average gas customer £55 a year.
The announcement from British Gas follows yesterday's research from Ofgem, the energy regulator, which said prompt action was needed to ensure consumers do not pay more than is necessary and that energy supplies were sustained.
Ofgem's chief executive, Alistair Buchanan, said: "We do not advocate change lightly, but all the facts point to the need for reforms now to provide resilient supply security. Acting earlier will also help keep costs as low as possible for consumers and business."
Today's cut from British Gas makes it the cheapest major supplier of standard gas at average consumption in the UK. British Gas has also removed the price 'differential' for gas pre-payment meter accounts – meaning pre-pay gas customers are now paying, on average, the same for their energy as customers who pay by cash or cheque.
Announcing the gas price cut, British Gas managing director, Phil Bentley, said: "I'm pleased we're able to offer our customers some extra help with this gas price cut - and that we're able to do this while it's still winter, allowing our customers to really feel the benefit.
"This latest price cut means that, no matter where you live in Britain, British Gas is offering on average the cheapest standard gas, electricity and dual fuel prices - beating all other major suppliers."
Consumer watchdogs now hope other energy suppliers will follow suit, and also reduce prices. Having just lived through one of the coldest winter's on record, there were concerns many UK households were having to cut back elsewhere on their home budget just to afford energy bills to keep warm.
Ann Robinson, director of consumer policy at uSwitch.com, said following British Gas's announcement: "This is the news that we've all been waiting for - expectations of a price cut have been in the air for some time now, but finally consumers get to see the colour of suppliers' money. Thankfully the cut comes in time to help consumers with heavy winter fuel bills - this is definitely a step in the right direction.
"Now that British Gas has made the move other suppliers will be under pressure to follow suit. But this is by no means a guarantee of further cuts."
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