British Gas profits 'should fuel price cuts'
Thursday, 25 February 2010 09:53
By myfinances.co.uk staff
Record-breaking annual profits of £595 million for British Gas only add to the "weight of evidence" for reductions in fuel prices, uSwitch.com has said.
The company announced this morning (February 25th) that its revenue for 2009 was up 58 per cent year-on-year, mainly thanks to falling costs in the wholesale market.
According to uSwitch.com, the supplier cut its prices for consumers twice in the last 12 months, knocking around 13 per cent - or £170 - off the average dual fuel bill.
However, while the annual average cost of gas and electricity for a British Gas customer has dropped to £1,158, this is still 27 per cent higher than the typical bill of £912 recorded in January 2008.
With "clear evidence" that all suppliers are benefiting from lower wholesale prices, uSwitch.com said there is now an overwhelming case for the reductions to be passed on to consumers.
Ann Robinson, the comparison site's director of consumer policy, said online price plans currently offer the best deal for customers.
"Consumers could cut their bills by around £300 today just by moving to an online energy plan - these are consistently cheaper than suppliers' standard plans but only 1.3 million households are on one," she commented.
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