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| British Gas cuts gas prices by 7% | British Gas cuts gas prices by 7% |
| (about 2 hours later) | |
| British Gas has announced it is cutting standard household gas prices by an average of 7%, with immediate effect. | British Gas has announced it is cutting standard household gas prices by an average of 7%, with immediate effect. |
| The price cut, which the company says will benefit eight million households, will save the average customer £55 a year, British Gas said. | The price cut, which the company says will benefit eight million households, will save the average customer £55 a year, British Gas said. |
| This is the third price cut that the company has implemented in the past 12 months, it added. | This is the third price cut that the company has implemented in the past 12 months, it added. |
| Energy suppliers have been criticised for not passing on cuts in wholesale oil and gas prices to customers. | Energy suppliers have been criticised for not passing on cuts in wholesale oil and gas prices to customers. |
| Wholesale gas prices dropped sharply from February 2009, and domestic prices dropped in the spring. | |
| Cold weather | |
| Fears have been raised over the cost of energy, especially for the most vulnerable, during the recent cold spell. | |
| Now that British Gas has made the move, other suppliers will be under pressure to follow suit Ann Robinson, Uswitch | |
| "At British Gas, we know household budgets are stretched and that our customers are concerned about the effect the recent cold weather will have on their winter fuel bills," the company said. | |
| "This latest price cut means that, no matter where you live in Britain, British Gas is offering, on average, the cheapest standard gas, electricity and dual fuel prices - beating all other major suppliers." | "This latest price cut means that, no matter where you live in Britain, British Gas is offering, on average, the cheapest standard gas, electricity and dual fuel prices - beating all other major suppliers." |
| After pressures from the regulator and consumer groups, the company also said it had removed the price differential for pre-payment gas meters, meaning pre-pay customers now pay, on average, the same for their energy as those who pay by cash or cheque. | |
| The price cuts are taken as an average, with customers benefiting to a different degree depending on where they live in the UK and what price plan they are on. | |
| The cheapest online dual-fuel tariff from British Gas has now fallen to £899. | |
| The average household bill for a dual-fuel British Gas customer will now drop from £1,202 to £1,147, according to price comparison website Uswitch. | |
| "Now that British Gas has made the move, other suppliers will be under pressure to follow suit. But this is by no means a guarantee of further cuts," said Ann Robinson, of Uswitch. | |
| Wholesale prices | |
| Energy suppliers have come under increasing pressure to drop the cost of bills, following falls in wholesale prices. | |
| Domestic prices have remained relatively static. Defending the lack of price cuts earlier, a British Gas spokesman said that other costs had risen. | |
| These included transport and distribution costs, and the government's "green levy" that had risen by 18% in the last year. | |
| On Wednesday, energy regulator Ofgem raised the possibility of a 25% rise in domestic energy bills in mainland Britain in the next 10 years, owing to the investment needed to cover energy shortages. |