British Gas to reduce your bills
British Gas have graciously announced that they're going to cut household gas prices by 5% as of next month. Now, of course, if they hadn't been wildly putting everyone's bills up for years, everyone would be happy, but forgive us all if we don't take to the street, cheering.
The Centrica owned energy dispenser said that this will benefit 6.8 million customers, and in real money, will reduce the average yearly bill by £37.
The cut will apply from 27th February has come about because of a fall in wholesale gas prices and British Gas said that they will be keeping prices under review "for further movements up or down". Don't hold your breath, basically.
Naturally, this announcement from British Gas comes after E.On dropped their prices. With increased pressure from all sides of the political spectrum toward Big Six pricing, there may be more, especially with the threat of new powers being proposed to allow Ofgem to kick energy companies into shape.
With two companies dropping their prices, that still means there's four to go who need to pass on the saving to their customers. They have some leeway too, because the fall in wholesale costs is around 20%, which means that the savings made with E.On and British Gas are relatively small, so some new customers could be won over if a rival passing on greater savings.