British Gas has finally cut its electricity bills by 10% with immediate effect, saving the majority of customers £43 a year on average. The move comes three months after the supplier dropped gas prices by the same amount.
After putting up prices twice in 2008, British Gas are the last supplier to make these recent cuts.
However, consumer groups remain unimpressed, claiming the cuts should be bigger, as wholesale energy prices have been halved - raising fears that wholesale prices aren’t being passed onto consumers.
“We would have expected much bigger reductions considering that wholesale gas and electricity prices are half what they were at their peak last year,” said Robert Hammond of Consumer Focus.
The latest announcement means that all customers who are on standard tariffs will benefit from the 10% drop in prices. Experts in the field predict that there will be further price cuts later on in the year, as it takes time for the effect of lower wholesale prices to filter through. Despite this, wholesale prices are actually expected to increase again, leading many to conclude that the recent run of savings by the major suppliers could be temporary.