Energywatch attacks tactical price cuts

Consumer lobby group Energywatch has slammed all energy companies for their tactical price cuts and has called for further reductions to ensure that all customers benefit.

British Gas customers will pay less for gas and electricity after prices were reduced by up to 17% and 15% respectively from today. Energywatch says that it hoped BG’s announcement over a month ago would “spark an energy price war among the six major suppliers in the UK” but instead it has only seen competitors reduce their prices to a level slightly lower than BG.

Energywatch campaigns director Adam Scorer says: “Energy companies are responding to cheaper wholesale prices, but you couldn’t say they are going out on a limb to attract customers with major price cuts.”

Alongside today’s price cuts, BG is introducing a new tariff, called Essentials, which is aimed at customers on low incomes and qualifying benefits.

Energywatch welcomes the tariff but adds that eligible customers should sign up quickly as places on the deal are limited.

Scorer adds that some new tariffs will mean the gap between direct debit and pre-payment prices widens. After the new price reductions take effect, BG customers paying by pre-payment meter who are not on the Essentials tariff will pay around £150 more each year for gas and electricity than those paying by direct debit.”

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