British Gas cuts electricity costs by 10%, apathy ensues
Reaction 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.