British Gas reduced electricity prices by 10%
British Gas today cut electricity prices by 10% for 4.5 million domestic energy customers after a fall in wholesale prices.
The company, which is the biggest supplier of domestic electricity in Britain, said the average dual fuel customer would see bills fall by £132 a year to £1,127.
It claimed the cuts made it the cheapest supplier of electricity in the country, with its rates now up to £111 a year lower than other firms. Other suppliers will now be under pressure to follow suit and reduce their prices.
The move follows a 10% cut in gas prices by the firm in February and has been driven by a fall in oil prices, which have dropped from a peak of $147 a barrel last summer to around $50 as the global economic crisis has deepened.We are very likely to see reduction in gas and electricity prices by other companies as well.
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Businesses could save £1.75bn on gas and electricity bills
Alistair Buchanan, chief executive of Ofgem, promised more protection, clearer contract terms and an end to the contentious automatic rollover practice when fixed-term contracts to end as small business owner are traped into the roll over contracts format where they end up paying double charges and can't switch over to different supplier for the same period, the simple reason is that every major supplier in United Kingdom require written notice before certain period to end any supply contract whether it gas or electicity contract if consumer fails to do so it rolls over to next 12 months.
The measures are part of a package aimed at a crackdown on unjustified price differences, more safeguards for vulnerable customers on pre-payment meters and removing obstacles preventing householders and businesses accessing better offers.
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