31st July 2015
British Gas has been criticised by cutting its prices by £35 a year after make profit of £528 million in the first six months of the year.
Centrica, owner of British Gas, announced its huge profits but has only passed on a paltry saving to customers.
Comparison site Gocompare.com warned consumers about big brand loyalty which is making companies like Centrica £63 per second but not benefitting those who pay for energy.
Caroline Lloyd of Gocompare.com said: ‘Two weeks ago British Gas announced it would be cutting its gas prices by 5%at the end of August, saving the average customer around £35 a year.
‘However, a £35 a year reduction is paltry when compared to British Gas’ earnings of £63 a second, especially as customers will still be paying over £300 a year more than if they switched to the current energy ‘best buy’ today.’
She said even after the 5% the British Gas standard variable tariff is still ‘nowhere near the list of top 10 cheapest tariffs available to customers right now’.
‘That’s why this week’s massive profit announcement should be a wake-up call to hard pressed customers who have been funding the energy giant by paying more for their energy,’ said Lloyd.
Research by Gocompare.com found 27% of customers haven’t switched for over three years and 25% have never switched.
Citizens Advice has also called on energy companies to pass on low wholesale costs to customers.
Gillian Guy, chief executive of Citizens Advice, said: ‘The price of energy isn’t adding up for consumers.
‘British Gas’ large increase in profits will raise questions for people still struggling with high bills. All of the major energy firms are benefiting from falling wholesale costs, but customers are barely feeling the benefit.
‘British Gas’ recent price cut was welcome, but there is still a lot of work to do to make the market fair. The Competition and Markets Authority must provide a framework that gives energy consumers confidence that they are getting a good deal.’