Is the British Gas price reduction enough?
Despite the 10% reduction in British Gas's standard gas tariff the company has attracted growing criticism after the revelation that wholesale gas prices have fallen by 50% since UK gas prices peaked. The 10% reduction is seen by many as a "goodwill" gesture amid signs that UK government is looking to get tough with energy companies in the UK. Quite how they can justify retaining prices at current levels remains to be seen although there are hopes that other energy providers will follow suit and reduce their prices accordingly.
There is also wide spread concern that British Gas has waited until after the winter period, when more UK customers have suffered than ever before, before reducing prices by this token gesture. Slowly but surely the initial belief that prices are on the way down has been replaced by a growing concern that UK energy customers are being charged among the highest prices in Europe with little likelihood of a major reduction in the short to medium term.
Despite repeated attempts by the UK government to become more involved in the new pricing structure of the energy markets there appears to be little movement on this front. Pressure groups have increased attacks on both the energy companies and the government and some are optimistic of continued reductions.
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