British Gas price cuts labelled disappointing - Gas and electricity - News - Moneyfacts

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British Gas price cuts labelled disappointing

British Gas price cuts labelled disappointing

Category: Gas and electricity

Updated: 07/05/2009
First Published: 07/05/2009

MONEYFACTS ARCHIVE
This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.
Despite promising customers a ten per cent cut in their electricity bills, British Gas' decision has been called disappointing by a consumer group.

Consumers are not reaping the benefits of wholesale fuel prices that have dropped significantly in recent months, Consumer Focus insists.

The provider announced the reduction this morning, following the same cut in gas rates in February, making its electricity rates as much as £111 lower than local suppliers.

British Gas says that customers paying by monthly direct debit for dual fuel rates enjoy the lowest prices in the UK, with an annual saving of £132.

Phil Bentley, managing director, said the company would do what it could for customers and would continue to help them through the economic downturn.

While the move has been welcomed in some quarters, the cut has been labelled as disappointing by Robert Hammond, energy expert at the Consumer Focus group.

"It is likely to set the tone for the level of energy price cuts across the board," he continued. "We would have expected much bigger reductions, considering that wholesale gas and electricity prices are half what they were at their peak last year."

Mr Hammond urged Ofgem to announce a firm date for a review of the wholesale market to answer customers' questions over whether they are getting a good deal.

Disclaimer: Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time.

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