NEA welcomes British Gas price cut and social tariff

National Energy Action (NEA), the leading national fuel poverty charity, has welcomed British Gas’s announcement today that they will reduce their gas and electricity prices next month and applauds the introduction of their new social tariff which will assist 750,000 of their most vulnerable customers.

From 12 March 2007 British Gas will cut its standard tariffs for gas by 17 per cent and for electricity by 11 per cent.

The company, owned by Centrica, has been criticised for its high tariffs, which have caused major problems for vulnerable consumers.

Many of its customers decided to switch away from British Gas last year with its market share dropping for the first time below the 50% mark.

Since 2002, British Gas has increased gas prices seven times and electricity tariffs six times, while it last cut prices in the spring of 2000.

British Gas forecasts that the price cut next month will reduce the average annual dual fuel bill by £167 to £953.

William Gillis, NEA Chief Executive, said: “We welcome this price drop. With the cold weather and snow hitting us this week many households will need to use their heating more to keep their home warm and this will be welcome news for them.”

“A new social tariff aimed at cutting gas and electricity bills for up to 750,000 of British Gas’s most vulnerable customers will see their energy bills drop by 24.6% or around £285 per annum.”

William Gillis added: “NEA has pressed the energy supply industry to introduce social tariffs that actually represent the best deals available. NEA applauds British Gas for the introduction of a social tariff which will ensure that its low-income and vulnerable customers are guaranteed the best deal in terms of the prices they pay for gas and electricity from the company”.

Centrica chief executive Sam Laidlaw said: "If wholesale prices fall further this year, then we will pass those price reductions on to our customers."
British Gas is the first UK company to announce definitive price cuts so far, after a round of increases from various suppliers.

"We all know that running a home can be costly so great savings are essential
and helpful to a balanced home life".

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