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Business News

British Gas cuts prices by 5 per cent

British Gas has cut bills for more than five million customers with an average 5 per cent drop in its standard electricity tariff.

The cut will knock £24 from the average annual bill – six months after the company increased gas bills by 18 per cent and electricity by 16 per cent.

While British Gas said there was no reduction in its gas price, Southern Electric and Swalec owner SSE said that it would cut the price of gas by 4.5 per cent from 26 March. The moves follow EDF's decision to cut gas prices by 5 per cent.

The Big Six energy suppliers increased prices over the summer, but falls in wholesale energy prices have led to calls for suppliers to reverse their rises.

Ann Robinson, director of consumer policy at uSwitch, said it was disappointing that no suppliers had announced duel fuel cuts.

She added: "The bottom line for consumers is that these cuts will go nowhere near cancelling out the £224, or 21 per cent, hike in prices they've seen in the last 18 months.

"We can only hope that these reductions are the first and more will follow."