British Gas to price cuts in the springCompany admits price hike lost a million customers
15 December 2006
British Gas owner Centrica has promised to cut gas and electricity bills in the spring after nearly one million customers deserted the company.
Centrica said 978,000 accounts were cancelled following two large price hikes this year. But it said a fall in wholesale gas prices would trigger a fall in household energy bills in the spring of 2007.
Centrica Chief Executive Sam Laidlaw said: ‘The extra gas flowing through new pipelines to the UK, underpinned by our long-term contracts, has led to falling wholesale market prices.
‘As a result we will cut customer prices in the spring, with the exact amount to be decided once we have complete clarity of winter gas costs. I'm sure this will be welcome news for millions of our customers.’
British Gas is the most expensive energy supplier in the UK, with average annual gas bills up 91 per cent since 2003, to £707, and the average electricity bill 81 per cent higher at £428.
It hiked up household bills by 22 per cent in March and put a further 12.4 per cent on the cost of gas and 9.4 per cent on the cost of electricity in September.
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