19 January 2015
British Gas is to cut its energy prices, becoming the second company to do so, after E.On announced cuts last week.
British Gas has said that it will reduce gas prices by 5%, which it says will result in annual bill savings of £37 on average. The energy giant stated that the reductions are a reflection of falling wholesale prices.
Set to benefit 6.8 million customers, the new lower prices will come into play from 27 February 2015.
Commenting on the announcement, Iain Conn, Chief Executive of Centrica plc, which owns British Gas, said: ‘We bear the responsibility of managing the risks of buying energy ahead on behalf of our customers, who value the predictability this brings. Taking this decision now, at a time of continuing uncertainty, shows our absolute commitment to pricing competitively, with customers at the forefront of our minds.’
E.On announced a 3.5% cut to energy prices last week, being the first of the big-six energy firms to do so.
Stating that the reductions will result in an annual saving of £24, the energy giant confirmed that the price change is effective immediately.
Tony Cocker, Chief Executive of E.ON said: ‘[The] 3.5% cut to our standard gas price … demonstrate that we fundamentally believe in doing the right thing for our customers. This is further evidenced by the fact we are the first supplier to reflect through our standard tariff the overall drop in wholesale gas prices this winter but also that, when our prices had to increase at the start of 2014 to reflect cost increases, for the second year running we announced later than any other major supplier and, on that occasion, at a lower average percentage increase level than any other major supplier.’