One of the biggest domestic energy suppliers in UK, British Gas is going to cut gas prices by 5% on 27 February. The cut in gas prices will reduce a typical household’s energy bill by £37. Earlier E.On reduced its standard gas prices by 3.5% last week.
Iain Conn, chief executive of Centrica said, “We’ve been watching the significant moves in the international energy market extremely closely for some time, with the aim of helping customers with a price cut at the earliest possible opportunity.”
Different commentators and politicians have been asking the energy firms to reduce prices. Oil prices have been plummeting and wholesale gas prices which is linked to oil prices has also seen double digit falls in recent months. Experts opine that wholesale prices have come down by as much as 29%.
E.On had announced the price cut immediately but British Gas said that the change will not take effect for more than a month following the coldest time of the year. The move is sure to be resented by consumers who are angry because price cut after winter is not a big deal.