British Gas is to reduce the cost of its standard gas tariff by 5% from 27 August, which will cut the average energy bill by £35 a year.
This second reduction in the gas price in six months will benefit customers on the Standard and Fix & Fall tariffs, who will have seen a £72 fall in bills since February by the time the new price cut comes in.
British Gas to cut gas prices by 5% on 27 August
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British Gas is to reduce the cost of its standard gas tariff by 5% from 27 August, which will cut the average energy bill by £35 a year. This second reduction in the gas price in six months will benefit customers on the Standard and Fix & Fall tariffs, who will have seen a £72 fall in bills since February by the time the new price cut comes in. The company said almost seven million households would be better off by the latest 5% reduction. British Gas said electricity prices would remain unchanged "despite the fact that several elements which make up the bill are rising steadily". It also pointed out that it offers the cheapest standard electricity prices of the Big Six in 12 of the 14 UK regions. However, Stephen Murray, energy expert at MoneySuperMarket, believes British Gas's price cut is too little, too late. He said: "While customers have to be notified 30 days before any increase to price, a cut in bills can be brought in immediately, so it's disappointing to see that this isn't the case and British Gas is making its customers wait over a month before they see this reflected in their bills." He added: "While we welcome moves to bring down the price of energy, especially before winter, it is long overdue and may seem underwhelming compared to how low wholesale prices really are." The comparison site's advice for significantly cutting energy bills is never to sit on a standard tariff – something 70% of energy customers are doing according to the Competition and Markets Authority. "There is a glut of far cheaper tariffs available through shopping around with average bills that are around £200 lower – a far bigger saving than British Gas is offering," explained Murray.
Source Moneywise http://ift.tt/1gBF7HZ
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