British Gas consolidates its position at the top of best buy tables

Gareth Kloet, head of utilities at Confused.com, comments on British Gas's decision to ease the financial burden for 4.5million customers, by reducing its standard electricity prices by 10%: "British Gas's latest announcement reaffirms its position as the cheapest electricity supplier in Britain, with rates of up to £111 less than those provided by some local suppliers. Following hot on the heels of its 10% February price cuts for gas, British Gas customers will now save an average of £132 on their dual fuel annual bills

"In order for customers to make the most of these recent price cuts, they should opt for British Gas's WebSaver 3 tariff which was launched today and tracks 6% below the new standard tariff prices, until August 2010. This means that whether prices go up, down, or remain the same, customers will pay a minimum of 6% less than the standard tariff prices. The only catch is that customers will have to pay a fee of £30 for gas and £30 for electricity should they cancel the tariff before December 2009. They will also need to manage their bills online.

"As the largest energy provider in the UK, any reduction in prices by British Gas is welcome news to new and existing customers, who also have their electricity with them. These latest reductions now place the WebSaver 3 tariff firmly at the top of the energy ‘best buy' tables. British Gas has certainly thrown down the gauntlet to its rivals, and we will be watching the market closely to see how the other energy companies will respond to the latest manoeuvre in the energy price war.

"However, it is difficult to know if these cuts are the shape of things to come as any price changes by other providers are more likely to depend on acquisition strategies for customer growth, than on current market prices. Only today, E.ON launched an extension to its fixed tariff that suggests that it doesn't think that prices will fall in the near future. It therefore makes sense for customers to opt for the highly competitive WebSaver 3 tariff which promises to track a further 6% below even the standard rate cuts.

"British Gas really seems to be upping its game, in the battle for energy custom, and the fact that 4.5 million customers will benefit from these price cuts is great news. However, British Gas boasts 10.1 million customers which means that there are almost 6 million customers who could benefit still further. We would advise all energy customers to review their current tariff and provider, and ensure they are getting the best deal available on the market. Switching providers has never been easier, or more important, in order to ensure that customers are not overpaying for their energy, and British Gas has just made the reason even more compelling!"

For more information, visit confused.com