British Gas Cutting Standard Energy Price Rates

British Gas announces a 7% price cut on standard household gas prices

In yet another initiative to reduce the average gas bills borne by British Gas customers, British Gas announced a 7% reduction in priced of standard household gas effective 4th February 2010. On the overall, BritishGas customers will be in a position to save £55.

This initiative of introducing a 7% cut comes amidst heavy criticism from regulator and consumer group where the full benefits of the wholesale gas price reduction have not been fully passed on to the customers using household gas.

British Gas has gone ahead and removed all the price differences which existed amongst those opting for pre-paid gas meters and those paying through direct debit facility. This move also ensures irrespective of the location of your residence, as a British Gas customer you enjoy the cheapest standard gas, electricity and dual fuel prices.

British Gas customers who have chosen Direct Debit payments will get a reviewed monthly amount as and when their next reassessment is due. Meanwhile for those of you who have opted for prepayment meter need to visit a PayPoint outlet and get the new prices transferred onto your meter. Those who make quarterly payments through cash or cheque will be billed at the reduced rates effective 4th February 2010.

This is the third price cut which has been announced by British Gas in the past 12 months. It is most likely that a dual fuel customer of British Gas will be paying approximately £1,147 after the 7% price cut over the earlier amount of £1,202. With hopes of paying reduced gas bills, most British Gas customers can expect to save slightly more and be slightly relaxed.

At the same time, you have people who believe that this price cut phenomena could be a temporary one as gas prices are certainly going to rise once the economy recovers in the future.