January 19, 2015
Today British Gas have announced plans to reduce household gas prices by 5%, cutting annual energy bills by £37 on average.
The supplier, owned by Centrica plc, said that a MASSIVE 6.8m customers will benefit from this decrease in British Gas' standard tariff's, including all customers on their Fix & Fall tariffs. The reduction will come in to place on February 27th 2015.
The news of the gas price reduction encouraged Prime Minister, David Cameron, to tweet the following "It's welcome to see British Gas cutting prices. We'll continue to encourage energy firms to pass on falls in wholesale prices to customers."
Despite that the gas being used to heat peoples home today was bought at the higher 2013/14 prices, British Gas have decided to pass on the saving made from the wholesale gas prices for 2015. Due to the volatility of wholesale prices, British Gas will be keeping their prices under review.
Commenting on the announcement, Iain Conn, Chief Executive of Centrica plc, said:
"We've been watching the significant moves in the international energy market extremely closely for some time, with the aim of helping customers with a price cut at the earliest possible opportunity. Operating in such a volatile market, no pricing decision is straightforward.
"We bear the responsibility of managing the risks of buying energy ahead on behalf of our customers, who value the predictability this brings. Taking this decision now, at a time of continuing uncertainty, shows our absolute commitment to pricing competitively, with customers at the forefront of our minds."
Ian Peters, Interim Managing Director of British Gas, said:
"This price cut, worth £37 off the average annual bill, will help our customers keep their energy costs down at a time when many household budgets are still under pressure. We're pleased that existing customers on our Fix & Fall tariffs will also see the benefit of this price reduction.
"We know customers expect competitive pricing and good value from British Gas and we continue to keep our prices under constant review. We have a range of competitively priced products, fixed and variable, to suit customers' needs and preferences.
"We'll also continue to lead in the development of innovative products and technologies to put customers in control of their energy usage and help them keep their energy bills as low as possible."
In line with its usual practice, British Gas' parent company, Centrica plc, will provide an update on the 2015 financial outlook in its Preliminary Results announcement on 19 February 2015, including the impact of the change to UK residential energy prices and of lower wholesale commodity prices across the Group.
Posted on January 19, 2015 at 12:16 PM