British Gas cuts electricity costs by 10%, apathy ensues

11 May 2009

http://img10.imageshack.us/img10/5331/y5c1ftbtsmy6u38iuw04583.jpgReaction to British Gas's May 7 announcement that it was cutting electricity costs by a further 10% was greeted by apathy at best, and scathing critique at worst.

The main reason that the price cut isn't being enthusiastically embraced is that last year British Gas raised prices by 42%. Also, consumer groups say that the cuts do not reflect the level of cuts in wholesale electricity prices, which have been much greater than 10%.

While British Gas is the last of the "Big Six" electricity suppliers to cut rates, there is already speculation that a new round of price cuts among the competition could begin anew. Right now, British Gas is the cheapest of the electricity suppliers for those who use monthly direct debit payment.

So what is the typical consumer to do? Go ahead and switch, then wait for another round of price cuts and switch again? Perhaps the real solution, the one that makes the most sense is to do what you can right now to lower your monthly bill. For example, signing up for an online account and paying automatically by direct debit will reduce your costs immediately.

If you haven't compared plans online, go to UKpower.co.uk, a comparison/switching site to find the latest rates and payment plans. And regardless of which you choose, being smart about electricity use can save you money and save natural resources.

[UK Power]

TOPICS:   Utilities

7 comments

  • Robin
    Hahaha.. love the graphic. How nerdy!
  • Mike H.
    BG should really be saying, "we've only raised our prices by 30%" wankers
  • craig
    it aint just british gas mike,they all wankers. i left eon to go to british gas and i use online websaver and its cheap enough for me,pay about £20 gas and about £40 electric every month
  • Sean
    My gas/electric bill has doubled over the last year. I'm a single lad, I'm out the house (and its empty) from 7am till 8pm weekdays, spend every third weekend away, yet my combined direct debit is £90 a month. What the hell. Yeah, thanks, Gritish Bas(tards).
  • Sean
    And while I'm on the utilities subject - I'm charged about £80 a quarter for water - when the charge for the amount of water I actually use is about £10 and the rest are statutory fees! Jesus. We really do get stiffed in this country...
  • Chris
    Pfft, giving utility companies a free hand to dip into my bank account to take whatever they like?! You must be joking ... http://www.thisismoney.co.uk/consumer/bills/article.html?in_article_id=457230&in_page_id=510 http://www.telegraph.co.uk/finance/newsbysector/energy/2794158/British-Gas-direct-debit-customers-hit-with-42-per-cent-increase-to-bills.html etc
  • MikeBeaver
    Vince: Where ever did you get that imge from? I want it on a T-Shirt, looks quality :) Mike..

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