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| British Gas criticised over 5% cut to gas bills | British Gas criticised over 5% cut to gas bills |
| (35 minutes later) | |
| British Gas has been criticised, despite announcing a 5% cut in gas bills, which will save the average customer £35 a year. | |
| It is the second gas price reduction in six months by the firm, which says the two cuts together will cut £72 from typical annual bills. | |
| The price reduction will take effect from 27 August. | |
| Critics said the cut was too small. But British Gas said higher pipeline costs had made a larger cut impossible. | |
| Martin Lewis, the founder of MoneySavingExpert, called the cut "paltry" and "trivial". | Martin Lewis, the founder of MoneySavingExpert, called the cut "paltry" and "trivial". |
| The news was also criticised as "underwhelming" by the website MoneySuperMarket, which said the cut should be introduced immediately. | The news was also 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. | 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 | Costs |
| The website MoneySuperMarket said the cut should be deeper, following a 25% fall in the wholesale cost of gas since December 2014. | 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, according to the Natural Gas Price Index (NGPI) - following a drop in the price of oil. | The price has fallen from 57.9p a therm last December, to 42.93p this week, according to the Natural Gas Price Index (NGPI) - 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". | Stephen Murray, energy expert at MoneySuperMarket, said the cut was "long overdue, and may seem underwhelming compared to how low wholesale prices are". |
| But British Gas said the wholesale cost of gas made up only half the bill. It said other costs had risen. | But British Gas said the wholesale cost of gas made up only half the bill. It said other costs had risen. |
| "If you look at transmission costs - the cost of the pipes that move the gas around the country - actually those costs have been going up steadily for a number of years," said Mark Hodges, the managing director of British Gas. | "If you look at transmission costs - the cost of the pipes that move the gas around the country - actually those costs have been going up steadily for a number of years," said Mark Hodges, the managing director of British Gas. |
| Such costs have been going up "in the 10-15% range," he told the BBC. | Such costs have been going up "in the 10-15% range," he told the BBC. |
| Energy firms also buy gas contracts up to two years in advance, to guarantee sufficient supplies. | Energy firms also buy gas contracts up to two years in advance, to guarantee sufficient supplies. |
| Competitive market | |
| Citizens Advice said customers had been losing out on low wholesale energy prices "for too long". | |
| It called on other energy suppliers to follow British Gas's lead. | |
| A week ago the Competition and Markets Authority (CMA) accused the big six energy firms of charging customers £1.2bn more than they would have been able to do in a truly competitive market. | |
| It said dual fuel customers could save £160 a year, on average, by switching supplier. | |
| In its report, the CMA proposed a form of price cap - but the idea was rejected by the government. | |
| 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: |