15th July 2015
British Gas cut gas bills by 5% or an average of £35 per year cut in the second reduction in six months.
The total of the two cost reductions will mean an average saving of £72 per year for its 6.9 million gas customers.
The cost cut will come on August 27, but Martin Lewis of MoneySavingExpert.com has called the reduction “paltry” in the face of a 25% drop in the wholesale cost of gas since December 2014.
Stephen Murray, energy expert at MoneySuperMarket.com, says: “Whilst customers have to be notified 30 days before any increase to price, a cut in bills can be brought in immediately, so it’s disappointing to see that this isn’t the case and British Gas is making its customers wait over a month before they see this reflected in their bills.
He says the move is “long overdue and may seem underwhelming compared to how low wholesale prices really are”.
Caroline Lloyd, of Gocompare.com, adds: “While another 5% cut will be welcomed by British Gas customers, it doesn’t come close to matching the serious savings that are being achieved by savvy switchers at the moment. By the time British Gas hands over its 5% reduction on 27 August, standard tariff gas customers could already be reaping the benefits of an even cheaper tariff by taking advantage of the industry’s new faster switching and securing a best-buy fixed tariff deal.
“British Gas customers need to weigh-up the £35 saving being offered, against the potential to save over £300 by switching to one of the UK’s current best buys.”
The best buy dual fuel deals according to GoCompare.com are:
|Supplier||Tariff||Tariff type||Annual cost||Saving vs typical bill||Early exit fees|
|GB Energy Supply||Premium Energy Saver||Variable||£870||£422||None|
|SSE||SSE 1 Year Fixed||Fixed||£899||£393||£30 per fuel|
|GnERGY||Fixed September 2016 v1||Fixed||£909||£383||£25 per fuel|
|extraenergy||Fresh Fixed Price Nov 2016 v1||Fixed||£912||£380||£25 per fuel|
|extraenergy||Clear Fixed Price Nov 2016 v1||Fixed||£913||£379||£25 per fuel|
|first:utility||iSave Fixed August 2016||Fixed||£917||£375||£30 per fuel|
|Green Star Energy||Rate Saver 12 Month Fixed 2507 Paperless||Fixed||£920||£372||£30 per fuel|
|Sainsbury’s Energy||Fixed Price July 2016||Fixed||£930||£362||£30 per fuel|
|Green Star Energy||Rate Saver 12 Month Fixed 1507 Plus Paperless||Fixed||£931||£361||£30 per fuel|