British Gas has announced it will be cutting standard gas tariff prices by 10% to take effect by the 19th February. British Gas are the first UK’s major energy supplier to cut prices after the major energy suppliers were urged at the end of 2008 by the government to pass on lower wholesale gas prices.
The price of wholesale gas is linked to oil which has seen its prices fall significantly. Firms increased the gas and electricity prices in July 2008 many blaming higher wholesale costs. Prices at British Gas rose by a record 35% and other firms lifted there’s around 20% leading the average duel fuel bill to rise by £300 over the year.
The 10% price cut by British Gas will benefit more that 7.5 million homes and cut £84 from the average homes annual gas bill. British gas will also be introducing prompt payment discounts for customers who pay by quarterly cash, cheque, quarterly equal payments and quarterly variable direct debit. All British Gas customers shall receive the price change automatically.
It is hoped that other suppliers will follow suit and prices become lower. Once other firms start reducing prices consumers can then look around to make sure they are getting the best deal. Changing suppliers who offer lower prices may benefit consumers who are looking to lower the price of their bills.
It does not cost any money to change supplier the only difference a customer will see is a different company name on their bills and cheaper prices. Uswitch is an impartial energy calculator which uses the latest rates direct from suppliers. It is a completely free service which compares prices to see how much money you can save on your energy bills. www.uswitch.com
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Business Writer
