For immediate release: Thursday 7 May 2009

BRITISH GAS CUTS ELECTRICITY PRICES: WILL OTHERS FOLLOW?

  • British Gas cuts electricity prices by 10% today making it the cheapest electricity supplier in the UK[1]
  • The price cut affects 4.5 million customers, making rates as much as £111 lower than the local electricity supplier[1]
  • Following the gas cut from earlier this year, British Gas customers will save £132 on average on dual fuel bills this year[1]
  • Average household bill for a dual fuel British Gas customer will now drop from £1,240 to £1,194 - £282 or 31% higher than its average bill of £912 on the 1st January 2008[2]
  • British Gas’ Websaver 3 product is now the cheapest online plan on the market falling from £1,034 to £1,019[3]
  • British Gas increased prices by £416 or 46% last year[2]
  • Overall, suppliers put prices up last year by 42% or £381, adding £4.3 billion onto household energy bills[4].   

 
Is this the sign of things to come?  British Gas’ announcement today that it is cutting electricity prices by 10% will be a boost to customers struggling to pay their bills in the current climate.  The cut follows the company’s 10% cut on gas prices, which took effect on 19 February this year and as a result of these, British Gas customers will save on average £132 in total on their annual household energy bill.   

The move means that British Gas is now the cheapest electricity supplier in the UK.  It has also brought out Websaver 3, which is the cheapest online energy plan on the market. 

Ann Robinson, Director of Consumer Policy at uSwitch.com, says: “This cut will be some relief for those British Gas customers who are struggling to pay bills - it makes British Gas cheaper than any other electricity supplier in the UK, and it also means that they’ve got the cheapest online plan.  This is giving choice to consumers, who had to deal with a 42% increase in energy prices last year[4]. 

“Rather than holding out for further price cuts, consumers should help themselves now by making sure they are paying the lowest possible price for their energy and learning to use less of it.  Moving to dual fuel, paying by direct debit and signing up to an online plan will all help save money – in fact switching to a competitive plan could put your energy bill by up to £350[5].  British Gas is helping consumers with this by offering the cheapest online plan on the market.”

British Gas increased its prices by 46% or £416 during 2008[2]. Its average household energy bill at the beginning of 2008 was £912. After today’s cuts it will be £1,194 - £282 or 31% higher than a year ago[2].

For more information visit www.uSwitch.com or call 0800 093 06 07
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For more information please contact:
Jo Ganly, uSwitch.com on 0207 802 2915 or joganly@uswitch.com
Katie Hayward, Lansons Communications on 0207 294 3631 or katieh@lansons.com;
Halina Flannery, Lansons Communications on 020 7566 9720 or halinaf@lansons.com

Dual Fuel British Gas Annual Bills


Date

Annual Bill Size

1st Jan 2004

£606

1st Jan 2005

£717

1st Jan 2006

£821

1st Jan 2007

£1,120

1st Jan 2008

£912

Current

£1,194

Annual bill sizes based on a medium user profile on a standard plan. Customers using 3,300kWh and 20,500kWh gas, paying on receipt of bill with bill sizes averaged across all regions.

About Us:
uSwitch.com is a free, impartial online and telephone-based comparison and switching service, helping consumers compare prices on gas, electricity, water, heating cover, home telephone, broadband, digital television, mobile phones, personal finance products and car insurance.

Our aim is to help customers take advantage of the best tariffs and services on offer from every supplier. To aid us in this task we have developed a comparison calculator, which evaluates a number of factors including price, location, service and payment method, and advises consumers on the best deal to suit their needs. 

The service is also available via fax and post. Fax 020 7233 5933 or write to Customer Services, uSwitch.com, 111 Buckingham Palace Road, London, SW1W 0SR, with your postcode and usage details.

uSwitch.com is not a supplier but acts as an independent advisor, giving consumers an impartial view of what’s on offer.