08/05/2009 - British Gas cuts electricity prices
Around 4.5 million British Gas customers are to benefit from an immediate 10% cut in electricity tariffs, it has been announced.
British Gas has been accused of lagging behind rival suppliers after lowering gas prices by 10% in February but leaving electricity bills unchanged.
It said recent falls in wholesale electricity prices meant it could make the cut, which will see the average electricity customer save around £43 a year.
The UK's biggest energy provider, which is part of energy giant Centrica, said the average annual bill for a dual fuel customer had dropped £132 from the start of the year to stand at £1,127.
But with wholesale costs dropping in line with the cost of oil - which fell from its peak of $147 a barrel last summer to about $50 - watchdog Consumer Focus said the move did not go far enough.
Energy expert Robert Hammond said: "We would have expected much bigger reductions considering that wholesale gas and electricity prices are half what they were at their peak last year.
"This again raises the question of whether wholesale price cuts are being fairly passed on to consumers."
Copyright © Press Association 2009
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