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| Version 3 | Version 4 |
|---|---|
| British Gas cuts domestic prices | British Gas cuts domestic prices |
| (about 1 hour later) | |
| British Gas has said it will reduce its gas and electricity prices next month. | British Gas has said it will reduce its gas and electricity prices next month. |
| The group says it will cut gas prices by 17% and electricity by 11%. It added that the average annual dual fuel bill would fall by £167 to £953. | The group says it will cut gas prices by 17% and electricity by 11%. It added that the average annual dual fuel bill would fall by £167 to £953. |
| British Gas's move has raised expectations that other energy companies might also cut their prices. | British Gas's move has raised expectations that other energy companies might also cut their prices. |
| The company, owned by Centrica, has been criticised for its high tariffs, which consumer groups say affect vulnerable consumers. | The company, owned by Centrica, has been criticised for its high tariffs, which consumer groups say affect vulnerable consumers. |
| Since 2002, British Gas has increased gas prices seven times and electricity tariffs six times, while it last cut prices in the spring of 2000. | Since 2002, British Gas has increased gas prices seven times and electricity tariffs six times, while it last cut prices in the spring of 2000. |
| Experts suggest the latest reductions could help the group hang onto its customers. | Experts suggest the latest reductions could help the group hang onto its customers. |
| Supplier switch | Supplier switch |
| More than four million people switched their electricity or gas supplier last year in a bid to cut their bills, recent figures from energy regulator Ofgem showed. | More than four million people switched their electricity or gas supplier last year in a bid to cut their bills, recent figures from energy regulator Ofgem showed. |
| British Gas lost about one million customers during the past 12 month. | |
| If wholesale prices fall further this year, then we will pass those price reductions on to our customers Sam Laidlaw, Centrica chief executive Check Centrica's shares | If wholesale prices fall further this year, then we will pass those price reductions on to our customers Sam Laidlaw, Centrica chief executive Check Centrica's shares |
| British Gas would now be offering the "lowest prices on the street" to customers, as well as introducing a new social tariff for "very vulnerable customers", Centrica chief executive Sam Laidlaw said. | British Gas would now be offering the "lowest prices on the street" to customers, as well as introducing a new social tariff for "very vulnerable customers", Centrica chief executive Sam Laidlaw said. |
| Centrica announced last month that it would be cutting its prices as wholesale prices had fallen. | Centrica announced last month that it would be cutting its prices as wholesale prices had fallen. |
| But, while welcoming the drop in prices, consumer groups criticised Centrica for failing to pass on a 50% drop in wholesale prices to consumers. | But, while welcoming the drop in prices, consumer groups criticised Centrica for failing to pass on a 50% drop in wholesale prices to consumers. |
| The firm had "decided to boost its profits rather than pass on potential savings", Paul Green of Energyhelpline said. | The firm had "decided to boost its profits rather than pass on potential savings", Paul Green of Energyhelpline said. |
| "In the next couple of weeks, we expect all the other major suppliers to announce price falls," he added. | "In the next couple of weeks, we expect all the other major suppliers to announce price falls," he added. |
| "All the suppliers are likely to follow British Gas by passing on only a small part of the wholesale price falls to their customers. | "All the suppliers are likely to follow British Gas by passing on only a small part of the wholesale price falls to their customers. |
| "This will cause a growing feeling of outrage among consumers as they struggle to pay their winter gas and electricity bills." | "This will cause a growing feeling of outrage among consumers as they struggle to pay their winter gas and electricity bills." |
| Further cuts? | Further cuts? |
| However Centrica's chief defended the company's decision not to pass on the whole of a 50% drop in wholesale prices on to customers. | However Centrica's chief defended the company's decision not to pass on the whole of a 50% drop in wholesale prices on to customers. |
| "We don't go and buy our gas purely on a day-to-day spot basis; we go out and have to buy our gas on a long-term basis," Mr Laidlaw told the BBC. | "We don't go and buy our gas purely on a day-to-day spot basis; we go out and have to buy our gas on a long-term basis," Mr Laidlaw told the BBC. |
| "If wholesale prices fall further this year, then we will pass those price reductions on to our customers." | "If wholesale prices fall further this year, then we will pass those price reductions on to our customers." |
| British Gas is the first UK company to announce definitive price cuts so far, after a round of increases from various suppliers. | British Gas is the first UK company to announce definitive price cuts so far, after a round of increases from various suppliers. |
| Last week, Scottish & Southern Energy announced it would be cutting its prices, but declined to say by how much and when. | Last week, Scottish & Southern Energy announced it would be cutting its prices, but declined to say by how much and when. |