British Gas cuts gas prices by 10%, after you really needed it
A phrase involving cart and horse arrangment is probably appropriate to describe it; from February 19th - a month before Spring starts and we all start using our central heating less, British Gas is to cut gas prices by 10 per cent.
British Gas claim the move will benefit more than 7.5 million homes and cut £84 from the average annual gas bill, with average bills falling to below £800 a year. 10 per cent is a modest cut, but it hardly makes up for the company ramping up bills by a third last summer.
So why couldn't British Gas have cut the prices sooner, such has before that nasty blast of Siberian weather when we all had to wear five jumpers and have the boiler chugging all day long? In their own words:
British Gas buys its gas supplies in advance to make sure it always has enough for its customers. As a result, much of the gas people are using this winter was bought in summer 2008 when wholesale gas prices were at record high levels - almost 90 per cent higher than the winter before. British Gas worked to keep its prices as competitive as possible and did not pass on this cost in full to its customers.
Expect other energy suppliers to follow suit, and the inevitable merry-go-round of being begged to swap suppliers and tariffs and blah.