Compare energy prices
Energy News
British Gas to cut prepayment prices
Thursday 27 November, 2008
By becca.talbot@consumerchoices.co.uk
Britain’s biggest energy supplier British Gas has said it will reduce rates on its controversial prepayment meter tariffs to benefit over two million customers.
The new rates will reduce British Gas (www.britishgas.co.uk) dual fuel prepayment customers’ annual energy bills by an average of £22.
The new rates will be in place from December 18, and will benefit all 2.3million British Gas prepayment customers.
Phil Bentley, managing director of British Gas, said: “We are always trying to bring down our costs and have a dedicated team who focus solely on improving the service we give our prepayment customers. We have identified cost savings, and are passing these on to our customers.”
He continued: “While wholesale gas prices are still high, they are falling; if that continues, we are hopeful we’ll be able to reduce prices for all our customers next spring.”
Britain’s “big six” energy suppliers are under sustained pressure to pass on reductions in wholesale winter energy costs, and prepayment meters have received particular scrutiny as they tend to be used by poorer, more vulnerable households.
Maria Wardrobe, of charity National Energy Action said: “We welcome the British Gas decision to reduce charges to electricity prepayment customers. These customers are often the most vulnerable and disadvantaged, and it is wrong that they should pay more."
She continued: "We want to see all suppliers take action across both gas and electricity prices though, to end the practice of unfair charging for both prepayment and standard credit customers. We just hope now that price reductions will be seen for all households before spring 2009.”
Prepayment meter customers are often those on the lowest incomes. Centrica will need to make more significant cuts in order to make a real difference to their bills.”
Despite the cut, British Gas prepayment gas and electricity customers will still pay an average of £33 more a year for their energy than customers who pay quarterly by Direct Debit.
Chris Eagle, commercial manager at EnergyChoices.co.uk said: “This is good news for British Gas prepayment meter customers. However, there is still room for improvement for the other 3.5million households paying by prepayment meters* in Britain. Scottish & Southern lowered its prepayment tariff rates earlier this month, and the pressure is on the other four big suppliers now to also reduce prices.”
* NEA statistics, July 2008
Read our guide to reducing your energy bills >>>
Compare energy prices and see how much money you can save.
Compare energy rices
Does this affect you? Want to add a comment?
Tell us about it.
|
|