British Gas reduces prices but is it enough?

Responding to the announcement that British Gas is to reduce gas prices by ten per cent, Ed Mayo, Chief Executive of Consumer Focus, said: "At last we have an energy company that the public can be proud of. British Gas today has had the courage to do the right thing as wholesale prices tumble. We have long been critical of the way in which the six energy companies act as a herd, giving consumers little real choice. Now, we have a choice.

"We have led the campaign on energy prices since starting last October. We will now turn the heat up on the other five companies that are keeping prices sky high.

"We would caution that tariffs are complex, British Gas hasn't always been the cheapest and consumers need to check that they will get a better deal from this price cut. But if they will, our call is for consumers to switch to British Gas, not just because they would be cheaper but because they are doing the right thing.

"Is ten per cent enough and should it be limited to gas alone? These are legitimate questions, as it is good to start with gas but there are millions of electricity only customers that will not see a penny off their bill.

"However, there is an underlying fault in the energy market that the regulator needs to take action on. Consumers would not have to rely on occasional grand gestures by energy companies if the market was more transparent and competitive in the link between wholesale and retail prices."