British Gas announces regional price cuts

British Gas has announced price cuts to its standard tariff for customers in the ‘Scottish Power’ and ‘Scottish Power/Manweb’ regions. The energy supplier has made the adjustment in light of Scottish Power’s price cut which comes into effect on 15 June 2007.

Because of these latest reductions, British Gas’ electricity and dual fuel standard tariffs will remain slightly cheaper than the local supplier when Scottish Power’s 15 June price cuts come into effect.

Karen Darby, founder of SimplySwitch.com, the price comparison and switching service, comments: “British Gas (known as Scottish Gas in the ‘Scottish Power’ region) has tinkered with its tariffs rather than implementing meaningful price cuts. While all price cuts are welcome, the actual reduction on an average electricity bill equates to only £1.30 a year – hardly a life changing amount. British Gas’ latest price adjustment only affects customers in certain areas of Scotland and Wales and means that the supplier will narrowly top the tables when comparing standard dual fuel and electricity-only rates.

“This type of ‘jockeying for position’ shows the lengths that energy companies will go to in order to maintain a superficial advantage. British Gas’ reputation has suffered lately following a number of problems with its billing system, but it has pledged to win back customers by fighting hard on price. So far, however, none of the suppliers have reduced prices in line with the drop in wholesale energy costs and the recent ‘price war’ has only gone a small way towards redressing the balance.

“Customers should bear in mind that British Gas’ latest cuts only apply to standard tariffs. We would always advise people with internet access to consider signing up to an online tariff. They usually offer the cheapest rates and, because customers take their own meter readings and enter them online, the bills are far more accurate.”