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British Gas to cut gas prices by 5% | British Gas to cut gas prices by 5% |
(35 minutes later) | |
British Gas says it will cut household gas prices by 5%, cutting annual energy bills by an average of £35. | British Gas says it will cut household gas prices by 5%, cutting annual energy bills by an average of £35. |
It is the second gas price reduction in six months by the firm, which says the two price cuts together will lead to an average total saving of £72. | |
The latest price cut will take effect from 27 August. | The latest price cut will take effect from 27 August. |
The news was criticised as "underwhelming" by the website MoneySuperMarket, which said the cut should be introduced immediately. | |
The price cut will affect 6.9 million energy customers either on standard or "fix and fall" tariffs. | The price cut will affect 6.9 million energy customers either on standard or "fix and fall" tariffs. |
It follows a similar cut of 5% that British Gas made in January, after moves by a number of the other "Big Six" energy suppliers. | |
Costs | |
The website MoneySuperMarket said the cut should be deeper, following a 25% fall in the wholesale cost of gas since December 2014. | |
The price has fallen from 57.9p a therm last December, to 42.93p this week - following a drop in the price of oil. | |
Stephen Murray, energy expert at MoneySuperMarket, said the cut was "long overdue, and may seem underwhelming compared to how low wholesale prices are". | |
But energy firms say there are many other costs involved. | But energy firms say there are many other costs involved. |
"There are a range of costs that make up energy bills, some decreasing and others increasing," said Mark Hodges, the managing director of British Gas. | "There are a range of costs that make up energy bills, some decreasing and others increasing," said Mark Hodges, the managing director of British Gas. |
They also buy gas contracts up to two years in advance, to guarantee sufficient supplies. | |
Will you see your gas bill go down? How do you feel about today's announcement? Please email haveyoursay@bbc.co.uk with your experiences. | Will you see your gas bill go down? How do you feel about today's announcement? Please email haveyoursay@bbc.co.uk with your experiences. |
Please include a contact number if you are willing to speak to a BBC journalist. You can also contact us in the following ways: | Please include a contact number if you are willing to speak to a BBC journalist. You can also contact us in the following ways: |