Gas and electricity Updated:
Energy suppliers are coming under increasing pressure to lower their gas prices, and so far, several have taken the plunge. But, it isn't just the Big Six – smaller suppliers are getting in on the action, too, and Ecotricity has announced that it'll be cutting its gas prices by 6.1%.
This rate cut is far higher than those offered by other suppliers, easily beating British Gas (5% cut), Scottish Power (4.8%) and E.ON (3.5%). Ecotricity only has one gas tariff so the cut will benefit all customers, too, resulting in an average saving of £42 per year.
Ecotricity founder, Dale Vince, commented on the announcement: "At Ecotricity, we've been watching the recent drop in wholesale gas prices and have been keen to pass on a price cut to our customers as soon as we could. We have just one gas tariff and one price for new and existing customers – so, uniquely in the energy industry, this price cut is for everyone."
Unfortunately, the reduction won't come into effect until May 1, but the green energy company still gets good marks for beating the Big Six in terms of the size of its reduction. And, it's even suggested that more cuts could be on the way – "with further wholesale falls expected this year, Ecotricity expects to be able to pass on more savings more quickly later in 2015," it said in a statement.
The company only offers one variable rate gas tariff with no fixed options available, which means some could be put off by the lack of security over bill payments. It also means the average dual fuel bill will be £1,189 from May 1, higher than some fixed tariffs on the market. But, it's the same price for all customers no matter how they pay, and it could be preferred for those who put green credentials first.
So, is it time to re-consider your options? Given that smaller suppliers are coming in with larger rate cuts than the big boys, it could be worth thinking outside the box. Some offer fixed rate tariffs that are cheaper than the Big Six, too, so start comparing the options and see if it's time to make a change.
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