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British Gas cuts gas prices by 5%

See how new price compares to cheapest deals

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The British Gas price reduction is due to come into place on 27 August 2015

British Gas has announced that it will reduce its standard gas tariff by 5%, saying the reduction would benefit 6.9m customers and reflects the recent fall in wholesale gas prices. 

The price cut is the second from British Gas this year and takes effect from 27 August. It will automatically benefit customers on Standard and Fix & Fall tariffs who will see their annual energy bills reduced by an average of £35. 

Are you on the best deal? Compare energy prices with Which? Switch.

Which? welcomes gas price reduction

While Which? welcomes this move from British Gas, we still think energy prices are too high and continue to campaign for them to be dropped. A recent investigation from the Competition and Markets Authority (CMA) has confirmed that many of us are paying too much for energy. 

Which? executive director, Richard Lloyd, said?: “The CMA was clear in its recent investigation that energy customers have been overpaying for far too long so it’s right, if overdue, that British Gas is starting to cut its prices. Other suppliers must also now do more to give their customers a fair deal.”?

If you’d like to see a reduction in energy and gas prices, join our Fair Energy Prices campaign – our petition calls for the CMA to take action on energy prices and has already collected over 200,000 signatures. 

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Top five cheapest energy deals

Although this price reduction is good news for British Gas customers, our analysis has found that the cheapest deals are from other energy suppliers. Here are the current top five cheapest dual fuel deals:

1. £870 GB Energy Supply Premium Energy Saver
2. £899
SSE 1 Year Fixed (paperless)
3. £912
Extra Energy Fresh (or Clear) Fixed Price Nov 2016 v1 (both paperless)
4. £914
Flow Energy Connect or Variable (both paperless)
5. £917
First Utility iSave Fixed August 2016 (paperless)

Click the links above to read the Which? review of each energy supplier.

*All prices are from Energylinx for a dual fuel medium user -13,500kWh of gas and 3,200kWh of electricity a year – paying by monthly Direct Debit and choosing paperless billing. Prices are averaged across all regions and correct as of 15 July 2015. All of these tariffs, except the ones from GB Energy Supply and Flow Energy, have exit fees of between £25 and £30 per fuel.

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