British Gas announced today that it is cutting its standard electricity prices by 10% with immediate effect.
This lowers bills for three quarters of British Gas electricity customers – 4.5 million people – including those with pre-payment meters.
The cut translates as a saving of £132 a year for the average dual fuel customer. Dual fuel customers are those who buy gas and electricity from the same supplier.
Although British Gas claims this cut makes it the cheapest electricity supplier in Britain on average, it is the last of the major players to cut electricity prices this year. It increased them twice last year, by 35% in July and 15% in January.
You can check whether the cut makes it worth switching energy suppliers by using Which? Switch – our free energy comparison and switching site.
British Gas said it was passing on falling wholesale costs. These have fallen thanks to the substantial fall in the price of oil, down from a peak of $147 per barrel last summer to around $50 now, and a reduction in demand for electricity.
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