British Gas accused of short-changing customers
City Index August 27, 2015 8:36 PM
<p>Despite a 5% price cut, experts say the energy supplier is failing to reflect the continued low cost of wholesale energy.</p>
Despite offering a five per cent price cut, British Gas has come under fire for not doing more to help customers reduce their energy bill.
Energy experts say that reductions to fuel bills due to the price cut will save 6.9 million households around £35 a year. However, they fail to reflect the continued low cost of wholesale energy.
The five per cent reduction on gas prices was announced in July and came into effect on Thursday (August 27th). However, critics say that British Gas, the country's biggest energy supplier, is not doing enough for consumers – and that cuts should have been higher.
Price comparison website uSwitch accused the company of "short-changing its customers. It says the price cuts should have been much larger, considering the on-going low-cost of wholesale energy.
Customers should get a "decent price cut"
Ann Robinson, policy director at uSwitch said that as the UK's biggest energy supplier, British Gas should be leading the market and setting a trend for others to follow.
"Although the price cut is welcome, I wanted [British Gas] to do far more and almost shame the other companies into action. But instead we get a price cut that is far smaller than it should be. It short-changes their customers and lets the other suppliers off the hook," she explained.
Ms Robinson says all of the suppliers should be giving customers a "decent price cut", reflecting what has happened to wholesale prices.
A spokesperson for British Gas said the company has always done as much as it could for consumers.
"We're cutting gas prices by five per cent for almost seven million customers, taking £35 off the average annual bill," the spokesperson said, noting that this is the second time prices have been cut in six months. In total, British Gas says the average customer is saving more than £72 a year.
At noon on Thursday in London, share prices in Centrica, the parent company of British Gas, were up 1.16 per cent to 238.83p.
GAIN Capital UK Limited (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.
No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.