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Price cuts pay dividends for British Gas

It's signed up more than 900,000 new customers


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British Gas has signed up more than 900,000 new customers after cutting fuel bills earlier this year.

An average of 65,000 customers a week have been joining the Centrica-owned group since it started slashing prices in February.

The cuts followed lower wholesale gas and power charges but Centrica said the outlook for wholesale prices and weather-related demand was tough to call for the rest of 2007.

British Gas now has 15.8 million gas and electricity customers and is beginning to regain lost ground after vast numbers of accounts were cancelled last year.

Customer service

The business had nearly 17 million energy customers at the start of 2006.

Last month British Gas was also condemned over its customer service standards after it emerged that customer complaints between October 2006 and March 2007 were more than double the amount for the same period the previous year.

But the group says it is striving to improve customer service, hiring 800 ‘frontline’ staff to better its customer relationships.

British Gas was one of the first major power suppliers to reduce prices this year after wholesale costs came down.

The firm dropped its gas charges by 17 per cent and electricity by 11 per cent in March, later followed by a 6 per cent fall in electricity tariffs and 3 per cent cut in gas bills.

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