British Gas cuts prices by 7 per cent, Ofgem needs £8,000
The great British Gas price cut is here! You know, the one before they put all the prices back up, so enjoy it while it lasts. Yes, BG have today cut the cost of household gas by an average of seven per cent; customers will apparently save an average £55 a year as a result of the move, assuming they don't hike prices up again in the next twelve months.
Still, after a month of bleak winter weather, any cut in energy prices is nothing to be sniffed at. BG are also claiming
that households using pre-payment meters will save more because the company has removed the price difference between payment methods.
It's not all good news, however, but then it so rarely is. Yesterday, regulators Ofgem warned that bills could hit nearly £2,000 a year for the average household by 2016, because of gas shortages. But that's a long way away and we'll probably be a huge war before then, so don't worry too much. They didn't say that bit.
The regulators were also bandying about some enormous numbers in an effort to scare somebody; as a country we apparently need to spend £200 billion – nearly £8,000 for every household in the country – to improve the energy infrastructure over the next 10 years to ensure consumers can still receive supplies. Who'll pay for that, I wonder...