Centrica, the owner of British Gas, on Thursday announced a cut in gas prices of 7 per cent for its 8m residential customers.
The decision follows months of complaints from consumer groups that falls in wholesale gas prices have not been passed on.
British Gas is the dominant supplier in the UK residential gas market and its rivals are expected to follow its lead and cut prices in the coming weeks.
“We know household budgets are stretched, and that our customers are concerned about the effect the recent cold weather will have on their winter fuel bills,” said Phil Bentley, managing director of British Gas.
The price cut will save the average gas customer £55 a year, said British Gas. It comes as Centrica prepares to report results that may revive protests about its profit margins. Full-year pre-tax profits for the group, due on February 25, are expected to fall to about £1.66bn, from £1.93bn in 2008.
[adrotate group=”16″]
