British Gas cuts electricity prices by 5% - and SSE follows suit
Momentum behind falling utility bills gathers again today with British Gas pledging to reduce its electricity prices by 5% with immediate effect and SSE cutting its gas bills by 4.5% from 26 March.
British Gas says this 5% cut once again establishes it as the cheapest electricity supplier of the main providers.
Its electricity customers will save on average £24 on their annual bills as a result of the cut.
"We want to keep prices as low as possible for our customers. Household budgets are stretched, and we are doing everything we can to help our customers keep their bills down," says Ian Peters, managing director of energy at British Gas.
Despite dropping its electricity prices, Mark Todd, director of price comparison site energyhelpline.com, says it is "baffling" British Gas hasn't also reduced its gas prices.
"Households use far more gas than electricity in the winter to heat their homes and people want more help with that portion of their bills. The maths doesn't seem to add up to the public and British Gas is leaving itself open to the claim it is quick to raise bills when wholesale prices rise but slow to reduce them when they fall."
Today's announcements from British Gas and SSE follow the news yesterday from EDF Energy that it is reducing its gas bills by 5% from 7 February. Ovo Energy, meanwhile, has cut the price of its dual fuel tariffs – also by 5%.
Rest of Big Six to follow?
"Pressure to cut prices has been mounting," says Ann Robinson, head of consumer policy at comparison site uSwitch.com.
"Hopefully this move will put more pressure on the rest of the big six to follow suit and cut their prices too."
Todd adds: "It will be fascinating to see what the remaining members of the Big Six do now because there are very real opportunities to increase customers if they play their cards right."