British Gas Cuts Prices

British Gas is cutting its prices by 5% or £26 for electricity with immediate effect. Which will benefit 5.3 million customers.

The average household bill for a dual fuel British Gas customer will now drop from £1,286 to £1,260 - £230 or 22% higher than its average bill of £1,030 in October 2010.

British Gas increased prices by £160 or 15% in 2011.
 
Overall, suppliers put prices up last year by 21% or £224, adding £2.24 billion onto household energy bills.

The waiting game is over for consumers as Britain's biggest energy supplier, British Gas, has announced that it is cutting its prices. The reductions - 5% or £26 for electricity - come into effect recently. It means that the average British Gas dual fuel bill will drop from £1,286 to £1,260.

It is the second big six supplier to cut prices for customers following EDF Energy's move yesterday. Now that EDF Energy and British Gas have acted, the other big six suppliers will be under pressure to bring their prices down again too, although reductions look unlikely to wipe out the £224 or 21% increase seen by households in the last 18 months[3], especially as neither supplier has cut both their gas and electricity prices.

British Gas increased its prices by 15% or £160 last year. Its average household energy bill in October 2010 was £1,030. After today's cuts it will be £1,260 - £230 or 22% higher than just over a year ago.

Ann Robinson, Director of Consumer Policy at uSwitch.com, says: "Now that two of Britain's biggest energy suppliers have moved to cut their prices, the rest of the big six will be feeling the pressure to follow suit. Although British Gas customers will feel the benefit immediately, many will feel disappointed that they won't see their gas bills decrease - especially with temperatures expected to drop. We hope that this will be just the first cut, and that further reductions will follow.

"However, this cut will go nowhere near cancelling out the £224 or 21% hike in prices in the last 18 months. But households can help to mitigate the impact of higher bills by shopping around for a cheaper deal and cutting back on the amount of energy they use by being more energy efficient. Moving to dual fuel, paying by direct debit and signing up to a competitively priced deal will save you up to £420, far more than price cuts will give you based on today's evidence."

Worth looking at switching provider? To find out, visit www.uSwitch.com or call 0800 093 06 07