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British Gas to cut prices by 5%


Energy supplier British Gas has announced that they will cut their gas prices by 5% on the 27th February, reducing the typical families household bill by £37 per year.

British Gas are the UK’s biggest domestic energy supplier, said that their decision reflects the recent fall in wholesale gas prices, which suppliers have been under pressure to act upon. Energy supplier E.On reduced its standard gas prices by 3.5% last week.

The move will benefit 6.8 million customers, and British Gas has claimed that the cut "accurately reflects" the change in its wholesale costs, as a large amount of their energy was bought by suppliers in advance. The wholesale price of gas has seen double digit falls over recent months, and in some cases they have fallen by 29%.

Experts have now criticized British Gas for waiting for the traditionally coldest time of year to pass by before cutting prices, and believe they should have done it immediately.

Iain Conn, chief executive of Centrica who own British Gas, 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,
"Operating in such a volatile market, no pricing decision is straightforward."

Stephen Murray, of price comparison website Moneysupermarket, said:
"The ball is firmly in the court of the remainder of the big six who are yet to make the next move and honour the energy savings that really should have been passed on to customers months ago."

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