Centrica Regulatory News (CNA)

11 Feb 2016 08:30

11 February 2016

British Gas leads with a further gas price cut of 5.1%

Average annual gas bill from British Gas will be almost £100 lower than 13 months ago British Gas is the only major supplier to reduce gas prices three times since the start of 2015 – an overall reduction of 14% This latest 5.1% cut takes effect on 16 March on all currently available tariffs, bringing 6.8 million customers an average saving of £31 British Gas will be cheaper than 95% of the market, for a typical household on a standard dual fuel tariff

Commenting on the announcement, Mark Hodges, CEO, Energy Supply & Services, UK & Ireland, said:

“British Gas was the only major supplier to cut prices twice last year, ensuring customers’ bills were lower through the winter. Today we’re announcing a further reduction to ensure our prices remain market-leading.

“Taken together, our three price reductions will bring the average household’s annual energy bill down by almost £100. British Gas will be cheaper than 95% of the market, for a typical household on a standard dual fuel tariff. Competitive pricing is the way to retain existing customers and win new business in this hard-fought market.”

The two previous gas price reductions from British Gas were each 5%, and took effect in February and August 2015.

British Gas has also reduced prices on all its currently available fixed tariffs, ensuring customers on these deals also benefit from the saving. These include our cheapest tariff, Fixed Price July 2018, which offers customers certainty of price for the next two years.

Customers on older fixed-rate tariffs that are no longer on sale can switch, easily and without charge, to one of the current tariffs. We tell customers in every bill if there might be a better British Gas tariff for them.

British Gas is systematically reducing its own costs as part of its effort to help keep customers’ bills down. It is also developing innovative products that offer customers the latest technology to manage their energy usage and keep bills down:

Hive Active Heating ™ - More than a quarter of a million people are using our Hive Active Heating system to control their heating and hot water from a smartphone or tablet. British Gas has recently launched Hive Active Plugs. Further innovations will go on sale later this year including smart lights, and window, door and motion sensors, as part of our Connected Home strategy. Controlling energy use - We lead the nationwide drive to equip every home with smart meters. We have installed more than 2 million in homes, providing our customers with real-time information on their energy usage. Smart meters mean an end to estimated bills. British Gas smart customers also benefit from reports and online tools giving them detailed information on their energy use and tips on how to save. Later this year smart meter customers will be offered special tariffs based on time of use, bringing potentially substantial further savings. Find out more at www.britishgas.co.uk or call us on 0800 048 0202.

ENDS

Notes:

All savings quoted are based on Ofgem average annual consumption of 12,500 kWh gas. Savings are averaged across all payment methods and regions. The price cut is an average reduction of 5.1%. Any variations reflect the cost of distributing energy to different regions. The cumulative reduction from the three price cuts on an average dual fuel annual bill is £98. British Gas is already the cheapest major supplier on average for standard variable rate electricity.

Contacts:

British Gas Press Office 0800 107 7015Centrica Media Relations 01753 494105Centrica Investor Relations 01753 494 900

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