After E.ON’s announcement last week that they will be cutting gas prices, British Gas have quickly followed suit – making them the second of the big six energy companies to announce a cut in gas prices since the start of 2015.
British Gas have announced that they plan to cut household gas prices by 5% on 27th February, reflecting the recent fall in gas prices. This price drop will benefit 6.8 million customers on a standard tariff and Fix and Fall tariff, and is estimated to reduce the average annual energy bill by £37 a year. This price cut will apply to Sainsbury’s Energy’s standard gas tariff too. British Gas have also stressed that any customers who wish to switch between tariffs after today will not be charged exit fees.
The move comes after E.ON announced last week that they will be cutting gas prices by 3.5% with immediate effect, saving energy customers on a standard tariff £24 a year.
What could this mean for you?
After the announcement of price cuts by E.ON and now British Gas, it is speculated that the remaining four of the Big Six energy suppliers - EDF, Scottish Power, Npower and SSE – will announce their own price cuts in the upcoming days. But as most providers are well aware of the Labour Party’s potential price freeze if they win May’s General Election, it is expected that any further price cuts will only be relatively small, despite the fact that wholesale prices have fallen by 20%.
Switching your energy supplier could potentially save you more money than waiting for these price cuts to kick in. To make sure that you are on the best deal its worth reviewing your energy tariff every six months or so. If you have stayed with your original supplier for years then switching could potentially save you hundreds of pounds. Prices vary depending on where you live so you only need to be keep an eye on the cheapest tariffs for your area.