Energy price cuts may be ‘just around the corner’ - Gas and electricity - News - Moneyfacts

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Energy price cuts may be ‘just around the corner’

Energy price cuts may be ‘just around the corner’

Category: Gas and electricity

Updated: 10/01/2012
First Published: 10/01/2012

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 It is now over 6 months old so the content may be out of date.

Energy prices could be cut by as much as 10% by the end of the winter, giving financially stretched Britons a welcome boost.

The forecast from Energyhelpline.com comes after plummeting wholesale prices saw small supplier Ovo cut prices by 5% last week and Co-op Energy pledge reductions of 3% from February.

During the recent raft of price increases, which were implemented by all six of the UK's major energy firms, soaring wholesale prices were blamed.

However, since a peak in the summer, wholesale prices have fallen by 27%.

And with two of the smaller suppliers committing to cutting prices, there is hope that customers could soon benefit from a price-cutting war.

"The recent price reductions by two small suppliers and the plunge in wholesale energy prices mean residential price cuts of 5-10% could be just around the corner," said Mark Todd, director of Energyhelpline.com.

Such a price cut could save households an average of £135 a year on their annual fuel bills.

"A reduction of any sort would be welcomed by millions of customers who have been fighting a losing battle against shrinking disposable incomes and a seemingly relentless rise in the cost of living," added Mr Todd.

"A fall in electricity and gas bills could happen before the winter is out but we also need to strike a note of caution as in the past falls in wholesale prices have not meant similar percentage drops for residential ones."

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