After EDF, British Gas and SSE announce price cuts
After EDF announced they would be cutting your energy bill by 5%, and so, a very gentle price war began as today, British Gas became the latest energy company to cut electricity prices by 5%, with SSE following suit by cutting gas prices by 4.5%.
Of course, this is still a long way short compared to the amount energy bills have risen in the past two years and, more irritatingly, short of the 10% reduction being considered by parent company, Centrica.
Over summer, British Gas increased gas bills by 18% and electricity by 16%. 5% off those hikes seems like an empty treat. However, savings are savings. So what does this mean in real money? Well, if you happen to have a bill the same as the national average, you'll be saving between £24 and £28. Not a huge amount, but definitely better than a kick in the groin.
British Gas were keen to point out that there's only reductions in electricity bills and that there are no plans to reduce gas prices. Long term, gas prices will be going up despite a fall in wholesale prices.
Ian Peters, managing director of energy at British Gas, said: 'We want to keep prices as low as possible for our customers. Household budgets are stretched and we are doing everything we can to help our customers keep their bills down."
Adam Scorer, director of Policy and external affairs at Consumer Focus, said: "The widening gap between wholesale and retail prices has become the fault line for consumer confidence. Companies want to regain the trust of their customers. Narrowing this gap is a necessary part of achieving this."