UK: British Gas cuts energy tariffs

Energy price cuts for British Gas customers have come into force.
Gas prices have been reduced by 17% and electricity by 11%. The average annual dual fuel bill will fall by £167 to £953, British Gas has said.
Since February, when the firm said it would cut prices, four of the UK's six biggest energy suppliers have followed suit and pledged to lower prices.
Since 2002, British Gas has increased gas prices seven times and electricity tariffs six times. The energy giant last reduced its prices in early 2000. The company, owned by Centrica, has been criticised for its high tariffs, which consumer groups say affect vulnerable consumers.

Wholesale prices
Wholesale gas prices have fallen by about 50% over the past six months. In response, suppliers have started to lower their domestic energy prices.
"As wholesale costs have fallen sharply in recent months, a price cut from British Gas is not before time," said Karen Darby, chief executive officer of energy switching website Simplyswitch.
"This is a step in the right direction and will help the many families who struggle to pay their energy bills. However, as its energy prices have rocketed in recent years, the company still has some way to go to redress the balance," Ms Darby added.
Experts suggest the latest reductions could help British Gas to hang on to its customers.
More than four million people switched their electricity or gas supplier last year in a bid to cut their bills, recent figures from energy regulator Ofgem showed.
British Gas has lost about one million customers during the past 12 months.
Source: BBC News

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