British Gas today announced it’s cutting two of its gas tariffs by 5% from the end of February – the equivalent, it says, of £37 off the average annual bill for its 6.8 million customers.
The energy supplier is following hot on the heels of another Big Six supplier, Eon, who cut it’s prices by 3.5% last week.
To find the current cheapest tariff for you, use Which? Switch to compare energy prices. The new British Gas rates will not show up on any switching site until 27 February.
UPDATE 22/01/2015: The results of our annual survey on supplier customer satisfaction have now been revealed. See how British Gas got on in our rundown of the best – and worst energy companies.
How to get the cheaper gas tariffs
The British Gas price cut will be for both new and existing customers on it’s Standard and Fix & Fall tariffs, coming into effect on 27 February. British Gas says that if you’re an existing customer who isn’t already on one of these tariffs, you can switch onto them without any charge.
If you’re already on either the Standard or Fix & Fall tariff, you don’t need to do anything to get the reduction – the price cut will take effect from 27 February and will show up on your next bill after that date.
Which? welcomes energy price drop
British Gas is the second of the Big Six energy suppliers to respond to the falling price of wholesale energy, behind Eon. The price cuts come after Matthew Hancock, the Business, Energy and Enterprise Minister, wrote to the Big Six demanding price cuts because wholesale gas prices are 30% lower than a year earlier.
With both British Gas and Eon announcing price cuts, it’s likely to put pressure on the other ‘Big Six’ energy suppliers (EDF Energy, Npower, SSE and Scottish Power) to do the same.
Which? executive director, Richard Lloyd, said:
‘Wholesale costs have been falling for months and consumers expect to see this reflected in bills by now. British Gas customers will be questioning why they must wait so long to see their energy bills cut.
‘Every little helps, but this is another modest price cut for consumers in response to a significant shift in wholesale prices. Energy bills are consistently the number one financial concern for households, so we now need other suppliers to do more to help people struggling with the cold.
‘The Competition Authority’s investigation must look at whether falling wholesale energy costs are passed on fairly, or whether a lack of competition leaves us all out of pocket.’