British Gas price cut ‘may spark further reductions’

A recent price cut unveiled by British Gas could be “just the beginning” of reductions that could help fuel customers with their debt management, it has been suggested.

Robert Hammond, an energy expert at Consumer Focus, praised the provider for its announcement that clients on standard tariffs will benefit from lower charges.

“It’s a very small step in the right direction”, he said, adding: “I expect the other suppliers to follow suit”.

He argued that the move by British Gas will place pressure on its competitors to at least match the discount, adding that he hoped further reductions would exceed the ten per cent cut.

“The other companies generally were cheaper than British Gas before this price drop of theirs,” Mr Hammond remarked.

More than five million UK households currently live in fuel poverty, which is defined as the need to spend over ten per cent of income on energy bills, according to National Energy Action.

By Jamie Price