British Gas has lowered the price of its Gas to 7 million of its customers by 10%, which on the face of it looks like a welcome and overdue price cut.
What needs to be pointed out though, is that in just over 12 months British Gas has actually raised the price of its Gas & Electricity bills by 35%, which means that in real terms the price customers are paying for their home energy usage has still increased by over 25% since 2007 … despite the huge drop in wholesale fuel prices.
Therefore the answer to the question, “when is a price cut not a price cut?” is when British Gas recently said it had cut its prices !!
P.S. All of those customers who took advice and signed up for a fixed price tariff in the last 12 months will see no reduction in the price they pay for their home energy.
