But Stephen Murray, our energy expert, said: “While we welcome moves to bring down the price of energy, especially before winter, it is long overdue and may seem underwhelming compared to how low wholesale prices really are.
“It’s also frustrating that people have to wait until the end of August before the price cut takes effect.”
Switch and save
Murray points out that much bigger savings are available to all energy consumers on standard tariffs, including British Gas customers, by switching to a cheaper deal.
It’s frustrating that people have to wait until the end of August before the price cut takes effect
He said: “What’s crucial is that standard bill payers shouldn’t sit on their laurels and think any price announced by their existing provider is as good as it’s going to get.
“There is a glut of far cheaper tariffs available through shopping around with average bills that are around £200 lower for those on average consumption level – a far bigger saving than British Gas is offering.”
It’s expected that other energy suppliers, including the rest of the so-called Big Six firms, will follow suit and bring down the cost of energy for their millions of customers.
Last week, the Competition and Markets Authority (CMA) published its Energy Market Report and found that around 70% per cent of the nation’s energy customers are sitting on the most expensive standard tariffs with many of them never switching to a cheaper deal.
Switching your gas or electricity supplier has never been easier. Simply visit our energy channel to compare current energy deals and make that all-important switch.
It takes a matter of minutes to run a quote and the switch should be complete in 17 days, with no disruption to your supply and no work at your property or in the street outside.
Please note: any rates or deals mentioned in this article were available at the time of writing. Click on a highlighted product and apply direct.