TIDMCNA
19 January 2015
BRITISH GAS TO CUT GAS BILLS BY 5%
British Gas is to reduce household gas prices by 5%, cutting
annual energy bills on average by GBP37*.
-- The 5% reduction in standard tariffs will benefit 6.8 million
customers, including all customers on British Gas Fix & Fall
tariffs,
from 27 February.
-- The price cut reflects the recent fall in wholesale gas prices. Though
most of the gas being used in customers' homes today was bought
at
higher 2013/14 prices, our wholesale costs for 2015 are now
reducing
to a level where we can pass this reduction to our
customers.
-- Given the continuing volatility of wholesale prices, we will be
keeping our prices under review for further movements up or
down.
Commenting on the announcement, Iain Conn, Chief Executive of
Centrica plc, said:
"We've been watching the significant moves in the international
energy market extremely closely for some time, with the aim of
helping customers with a price cut at the earliest possible
opportunity. Operating in such a volatile market, no pricing
decision is straightforward.
"We bear the responsibility of managing the risks of buying
energy ahead on behalf of our customers, who value the
predictability this brings. Taking this decision now, at a time of
continuing uncertainty, shows our absolute commitment to pricing
competitively, with customers at the forefront of our minds."
Ian Peters, Interim Managing Director of British Gas, said:
"This price cut, worth GBP37 off the average annual bill, will
help our customers keep their energy costs down at a time when many
household budgets are still under pressure. We're pleased that
existing customers on our Fix & Fall tariffs will also see the
benefit of this price reduction.
"We know customers expect competitive pricing and good value
from British Gas and we continue to keep our prices under constant
review. We have a range of competitively priced products, fixed and
variable, to suit customers' needs and preferences.
"We'll also continue to lead in the development of innovative
products and technologies to put customers in control of their
energy usage and help them keep their energy bills as low as
possible."
British Gas leads the way in helping customers understand and
manage their energy use:
-- Tariff Checker: We tell customers, in every bill, if there
could be a better British Gas tariff for them.
-- Switching between tariffs: We charge no exit fees on our
current available tariffs when customers are changing tariffs
or
switching.
-- Reducing energy usage: We continue to lead on the nationwide
roll-out of smart meters, with over 1.1 million installed,
providing
our customers with real-time information on their energy usage
to help
manage their bills. Over 150,000 people are also using our Hive
Active
Heating controls to manage their heating and hot water from a
tablet
or smart device.
Find out more at www.britishgas.co.uk or call us on 0800 048
0202.
In line with its usual practice, British Gas' parent company,
Centrica plc, will provide an update on the 2015 financial outlook
in its Preliminary Results announcement on 19 February 2015,
including the impact of the change to UK residential energy prices
and of lower wholesale commodity prices across the Group.
ENDS
Notes to editors:
* Based on Ofgem average annual consumption of 13,500 kWh gas,
across all payment methods and regions.
1.Breakdown of costs on the British Gas average dual fuel bill
2013:
Wholesale energy costs (47%), Transmission and Distribution
(24%), Environmental and social policies (9%), corporation tax and
VAT (6%), operating costs (9%) and profit (4%).
2.Regional variations
Region % Reduction GBP Reduction
Eastern (5.0%) (GBP36.86)
East Midlands (5.1%) (GBP36.86)
London Electricity (4.9%) (GBP36.85)
ManWeb (5.1%) (GBP36.85)
Midlands (5.0%) (GBP36.86)
Northern (5.2%) (GBP36.85)
Norweb (5.1%) (GBP36.86)
Scottish Hydro Electric (5.0%) (GBP36.85)
ScottishPower (5.0%) (GBP36.85)
Seeboard (4.9%) (GBP36.85)
Southern Electric (4.9%) (GBP36.85)
SWALEC (5.1%) (GBP36.85)
SWEB (5.2%) (GBP36.85)
Yorkshire (5.0%) (GBP36.86)
Contacts:
British Gas Press Office 0800 107 7015Centrica Media Relations
0800 107 7014Centrica Investor Relations 01753 494 900
This information is provided by Business Wire
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