British Gas has announced it will reduce its standard tariff gas prices by 10% from 19 February.
British Gas has announced it will reduce its standard tariff gas prices by 10% from 19 February.
It said the move would benefit more than 7.5 million homes and cut £84 from the average annual gas bill.
It said the move would benefit more than 7.5 million homes and cut £84 from the average annual gas bill.
British Gas said it was the first UK major energy supplier to announce such a cut since 2007. Rivals are expected to follow suit.
British Gas said it was the first UK major energy supplier to announce such a cut since 2007. Rivals are expected to follow suit.
In July 2008, British Gas raised its gas prices by a record 35%, while other firms lifted prices by more than 20%.
In July 2008, British Gas raised its gas prices by a record 35%, while other firms lifted prices by more than 20%.
Wholesale falls
Wholesale falls
British Gas, which is part of the Centrica group, trades as Scottish Gas in Scotland.
British Gas, which is part of the Centrica group, trades as Scottish Gas in Scotland.
At the end of last year the "big six" energy companies were urged to pass on lower wholesale gas prices.
At the end of last year the "big six" energy companies were urged to pass on lower wholesale gas prices.
It's going to give some customers a bit of respite at a time of year when they are are going to be spending significant amount on heating their homes Tim WolfendenUSwitch.com
It's going to give some customers a bit of respite at a time of year when they are are going to be spending significant amount on heating their homes Tim WolfendenUSwitch.com
The cost of wholesale gas is linked to the price of oil, which has fallen significantly from the peak it reached in summer 2008.
The cost of wholesale gas is linked to the price of oil, which has fallen significantly from the peak it reached in summer 2008.
At the beginning of January, Scottish Power, one of the major suppliers, said it was relaunching one of its fixed-price gas products with a reduction of 10%.
At the beginning of January, Scottish Power, one of the major suppliers, said it was relaunching one of its fixed-price gas products with a reduction of 10%.
The average UK household energy bill is £1,293, some 42% higher than the same time last year.
The average UK household energy bill is £1,293, some 42% higher than the same time last year.
Better deal?
Better deal?
The move was a "positive first step" towards lower prices, said Tim Wolfenden, head of home services at price comparison website USwitch.com.
The move was a "positive first step" towards lower prices, said Tim Wolfenden, head of home services at price comparison website USwitch.com.
"It's going to give some customers a bit of respite at a time of year when they are going to be spending significant amount on heating their homes," he said.
"It's going to give some customers a bit of respite at a time of year when they are going to be spending significant amount on heating their homes," he said.
"But by only cutting gas prices and leaving electricity alone, British Gas are being cautious and waiting to see where wholesale prices are going."
"But by only cutting gas prices and leaving electricity alone, British Gas are being cautious and waiting to see where wholesale prices are going."
Other firms were likely to cut prices fairly swiftly, Mr Wolfenden added.
Other firms were likely to cut prices fairly swiftly, Mr Wolfenden added.
And he urged people to see whether they could get a better deal on their energy bills - especially if they had never swapped supplier before.
And he urged people to see whether they could get a better deal on their energy bills - especially if they had never swapped supplier before.
Will you benefit from the price cut? Should rival companies follow suit? Send us your comments using the form below:
Will you benefit from the price cut? Are you locked in on a fixed deal? Should rival companies follow suit? Send us your comments using the form below:
