British Gas prices fall

From Monday 12th March 2007, British Gas prices will fall by 17% for gas, while its electricity prices will fall by 11%.

This price cut is the first from British Gas, following a period of significant increases. Since January 2004 it has increased its prices by 86% for gas and 76% for electricity.

Karen Darby, CEO of SimplySwitch.com comments: “As wholesale costs have fallen sharply in recent months, a price cut from British Gas is not before time. 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.”

British Gas is not the only energy company to cut costs - four of the ‘big six’ suppliers have now cut their standard tariffs. Also, many suppliers have introduced competitive online tariffs. EDF Energy cut its online prices this month, while British Gas’s Click Energy 2 prices fell for the second time. Last month, both Powergen and npower both dropped their online prices.

Darby concluded: “We are expecting announcements any day now from both EDF Energy and Scottish Power for their standard tariffs. Switching has never been simpler and with prices still falling, households are set to benefit from the cheapest energy bills for sometime. Those who sign up to an online tariff are set to save the most.”