It seems that the government’s call for cheaper gas prices hasn’t fallen on deaf ears. British Gas has announced it will cut its domestic gas prices by up to 5%.
This will come into force towards the end of August and should reduce consumers bills by an average of £35 a year.
British Gas managing director Mark Hodges said:
“British Gas is committed to offering competitively priced products, and the price cut we’re announcing demonstrates that. There are a range of costs that make up energy bills, some decreasing and others increasing. This reduction reflects our lower projected total costs for 2015 and 2016 and we’re pleased that customers will see the benefits in their gas bills ahead of next winter.”
While this is a victory for the consumer, the generosity hasn’t spread to electricity prices, which will remain unchanged.
It makes you wonder if British Gas would have cut their prices if they hadn’t been under so much political pressure from Amber Rudd and the witch hunt that began with Miliband’s proposed price freeze.
Is it pure coincidence that gas prices have dropped shortly after the hoo-hah following the CMA’s announcement that the Big Six were overcharging customers by £1.2bn a year?
We think not. It just goes to show that lobbying for fair prices and making the public aware can go a long way. But while this reduction in price is a triumph for consumers, they still need to get pro-active and change their suppliers and tariffs. There are plenty of deals to be had out there.
But if you still fancy getting your energy from the Big Six, we expect there’ll be more price cuts coming as they follow in British Gas’ footsteps. The question is, who’s next?