British Gas Cuts Prices By 7%

(Guardian) – BRITISH GAS today announced it was cutting residential gas prices by an average of 7% with immediate effect, in a move that will put pressure on other suppliers to follow suit.

The company, which is the UK’s biggest provider, said the price cut would benefit 8 million customers and save the average household £55 a year. This is the third time the energy giant has cut prices in the past 12 months, and it claimed it was now the country’s cheapest major supplier of gas and dual fuel packages.

At the same time, it said it was removing the premium it charges customers on pre-payment gas meters so they will now pay, on average, the same for their energy as those who pay by cash or cheque.

Customers who have recently signed up to British Gas’s fixed-rate Price Guarantee March 2011 tariff will also see prices fall.

Higher pricing for pre-payment customers, typically poorer households, has long been criticised by charities and consumer groups for aggravating the problem of fuel poverty.

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