Further energy price cuts to come?

Centrica's results today reveal that while overall profits have fallen, British Gas residential has reported a significant uplift in profits as a result of falling wholesale prices. Some of these benefits have already been passed onto customers with two price cuts this year totalling £126 or 10%.

This increase in profits should mean that customers can expect to be cushioned from future price increases and there may even be the possibility of further price cuts to come.

Ann Robinson, Director of Consumer Policy at uSwitch.com, says: "This increase in profits can only be a good thing for British Gas customers. While customers have already benefited from two price cuts this year, today's results should hopefully give them the peace of mind that they are unlikely to have a price increase for some time, and may even benefit from a further price cut. This year British Gas has led the field in offering the most competitive online plan in the market only recently losing its crown to French rival, EDF Energy. With today's announcement, British Gas is in a strong position to fight back and reclaim the spot as Britain's cheapest supplier.

"But rather than holding out for price cuts, consumers should help themselves now by making sure they are paying the lowest possible price for their energy and learning to use less of it. Moving to dual fuel, paying by direct debit and signing up to an online plan will all help save money - in fact switching to a competitive plan could cut your energy bill by up to £425."