Energy bills reduced by 7%
By Elliot Wright, 4th February 2010
Eight million households are set to see their energy bills
slashed as British Gas announced an immediate 7% price cut.
The cut will reduce the average household dual fuel bill by £55
from £1,202 to £1,147, and is the third price cut in the last 12
months for the UK's largest energy supplier.
However, prices are still a long way off what they were in
January 2008 when the average bill was £912 - 26% lower than
now.
The move will be welcomed by consumers who were yesterday warned
by energy regulator Ofgem that energy bills will soar over the next
decade as UK energy suppliers struggle to meet demand.
Ofgem admitted that consumers may struggle to afford energy as
investment costs could push up household bills by 25% to over
£1,500 by 2020.
British Gas is the first supplier to cut prices this year in
response to a fall in wholesale energy prices, and the cut comes at
a time where consumers are struggling with heavy winter bills.
Ofgem admitted that consumers may struggle
to afford energy as investment costs push up household bills by 25%
to over £1,500 by 2020.
However, Ann Robinson, Director of Consumer policy at energy
supplier switching service uSwitch.com, said the cut does not
necessarily mean further reductions will follow, and with bills
£270 higher than they were two years ago consumers should not
expect a significant fall in prices any time soon.
She said: "If today's move is an indication of what can be
expected from other suppliers, consumers can still expect their
household energy bills to be around £270 higher than just a couple
of years ago even after price cuts. This means that the overall
trend in household energy prices is upwards and consumers must
start looking out for themselves.
"We can all do this by making sure we pay the lowest possible
price for our energy and learning to use less of it. Online energy
plans consistently offer the most competitive prices - currently
costing around £300 a year less than suppliers' standard plans. But
just 5% or 1.3 million households are on an online energy plan and
I would urge many more to join them."
Useful links:
How to dispute
high gas and electricity bills
Claims Financial