British Gas readies push to promote price cut

British Gas is readying a major marketing campaign after becoming the second major energy supplier to cut its prices.


The utilities company announced today (12 January) that it has implemented an immediate 5% reduction in its standard electricity prices.

British Gas claims the price cut will knock £24 from the average annual energy bill, although this comes after the company raised electricity prices by 16% in August.

The move comes a day after EDF announced a 5% cut in its gas rates, cutting the typical annual bill by £38, due to the drop in wholesale energy prices and low energy use during the unseasonably mild winter.

Reports claim that despite yesterday’s (11 January) price reduction, EDF customers may still be up to £166 worse off than in 2010 after increased its prices by 19% last year.

British Gas is launching a heavyweight above the line marketing campaign today, across TV, radio, national press and online. The ads will claim that the company now provides the “cheapest electricity in Britain”.

EDF has also confirmed it is to launch a big advertising push to communicate its price cut to consumers “imminently”, although declined to offer further details at the time of writing.

This week’s announcements from British Gas and EDF are likely to put pressure on the remaining “Big Six” energy suppliers that have yet to announce their own price cuts. Some commentators have predicted a “spree” of price cuts in the coming weeks.

UPDATE: SSE, formerly Scottish and Southern Energy, has also announced plans today that it too is to cut prices. The utilities company is reducing its gas prices an average 4.5% from March.


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