British Gas, EDF Energy, Npower and Scottish & Southern Energy (SSE) have all slashed their domestic gas and electricity prices by up to 5%.
This is great news for consumers, but who will follow suit and will any other suppliers under-cut them?
Four of the UK’s six leading energy suppliers have all announced price cuts since the beginning of the year. This is due mainly to a fall in the wholesale price of gas, which now stands at 9.2%.
By last autumn, as a result of the increased wholesale cost, all of the leading energy firms increased their prices by an average of 20%, adding a massive £200 to the annual dual fuel bill.
This slight reduction in the price of gas or electricity is not likely to have much effect on the purse strings of consumers as they will only reduce annual bills by approximately £20-£40.
British Gas has reduced their domestic electricity tariff by 5% with immediate effect, this is said to wipe an average of £24 of the annual household bill.
SSE has slashed their gas prices by 4.5%, which will come into force on 26th March. SSE customers could see as much as £28 knocked off their bill.
EDF Energy cut their gas prices by 5% as of 7th February, slashing £38 off the annual bill.
Npower has cut their gas price by 5% which will be enforced as of 1st February.
Other suppliers might now be feeling the pressure to reduce their tariffs in order to maintain a strong customer base. With just E.ON and Scottish Power left to make a decision on whether to follow the recent moves made by the other leading suppliers, it surely won’t be long before we see the typical energy price ‘domino effect’ come into play.
When British Gas announced that it was raising its standard gas prices by 18% and electricity by 16% last year, it was only a matter of time before the other suppliers did the same.
Huge price hikes came into effect just in time for the winter. Household bills this month are expected to rocket as a result, despite the unusually mild winter start.
If you are looking to switch energy providers you could use an Energy comparison site.
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