British Gas, the UK subsidiary of Centrica, has announced a further cut to its standard electricity and gas rates for domestic customers, with immediate effect. The company said that its electricity rates have fallen by a further 6% and that its gas rates have fallen by 3% for all standard tariffs.
British Gas commented that this reduction amounts to GBP40, a sum that, when added together with the cuts announced in March 2007, reduces the average annual dual fuel bill by GBP207. This takes average prices down to GBP913 from GBP1,120 in just over six weeks, British Gas said.
British Gas added that its standard dual fuel tariff is now cheaper than the local supplier in every area of the country and that its Click Energy tariff remains the cheapest on the market. The company revealed that, since the first price cuts in March 2007, a further 678,000 new customers have signed up to receive the company’s services.
British Gas’ new managing director, Phil Bentley, said: We’ve taken the lead on lower prices and we are committed to restoring our customer service to an industry-leading level. That’s why we’ve added an extra 800 people to our call centers, scrapped plans for the GBP5 late payment charge, and why we are reducing our prices again – and doing it immediately.
Industry observers have welcomed the move, and Paul Schofield, head of utilities at price comparison website Moneysupermarket.com, said: A second price cut in as many months by the UK’s largest energy provider has to be commended. This type of aggressive action gives a clear signal to the rest of the market that British Gas is intent on offering competitive pricing.