British Gas Follows 5% Cut Trend
Yesterday, I wrote a post about EDF Energy cutting their gas prices by 5% and it seems that today, British Gas has decided to join the competition of cutting their electricity prices to keep their customers. Finally things are starting to look up during the beginning of 2012 for energy!
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British Gas has announced the 5% cut for their electricity with immediate effect after EDF Energy announced their plans to cut its gas tariff by 5% as well, owing to low energy use during the mild winter. I’m starting to see a pattern here, are you?
With these price cuts starting to appear, it will most certainly add pressure on the other major energy suppliers to cut their own tariffs because of the fall in wholesale prices.
According to British Gas, the average annual domestic bill could fall by £24.
Okay so it may not be a lot yet, but at least it’s a start for many energy suppliers who have obviously started to listen to their customers!
As a homeowner myself, to me this is starting to become exciting news because all I need now is for my energy supplier to join in and we’ll be laughing as I’m sure there is probably quite a few out there, who like myself, had the luxury of not having to keep my heating on high during the past couple of months.
Ian Peters from British Gas commented saying “We want to keep prices as low as possible for our customers. Household budgets are stretched, and we are doing everything we can to help our customers keep their bills down.”
He carried on saying “This price reduction means British gas is once again offering the cheapest standard electricity, on average, of any major supplier.”
British Gas said that their 5.3 million customers on variable tariffs, including those on dual-fuel deals, would benefit from the price cut.
Unfortunately, British Gas won’t be changing their gas charges because although we have seen some short-term falls in the cost of gas, the longer term trend in wholesale prices would be going up. However, the company mentioned that it was at a too early stage to predict what would happen to prices in the future.
(UPDATE) Mark Todd of Energyhelpline.com said “The maths do not seem to add up so British Gas need to do something on gas as well if they want to look like they are passing on wholesale falls fairly. It may be interesting to note that a 5% gas price cut would have cost British Gas more than double this electricity price cut.”
Scottish and Southern Energy have just announced the planned reduction of its gas price in late March; only hours after British Gas announced they were cutting their electricity price.
Data sourced from: BBC News
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