"we want to keep prices as low as possible for our customers. household budgets are stretched, and we are doing everything we can to help our customers keep their bills down.." so said ian peters of british gas.
and they have indeed reduced their electricity prices by 5%, effective immediately.
however don't forget that they increased prices in august by 16%, not to mention that gas prices also rose by 18% in the same month.
so even with today's cut british gas are still ahead of the game.
other suppliers are reducing the prices of both electricity and gas.
british gas say that they are not dropping the price of gas because the long term trend of the wholesale price of gas is upward. other suppliers don't seem to agree to this and say that the future wholesale price is cheaper now than it was so as they buy so far in advance they will be lowering the costs.
the costs are coming down (but probably not below the price rises of last year) when the worst of the winter has passed. just how amazing is that?
and here is a bet i will make with you right here and right now. the price of gas and electricity will rise this year sometime in august or september to take immediate effect - not in a couple of months (as is happening with some of the price drops) in order to get the prices in place for the winter.
don't ask me how i know.