British Gas immediate 10% cut in Standard Tariff electricity prices

worldtraveller

British Gas has cut its Standard Tariff electricity prices by 10%, with immediate effect, which will, they say, affect around 4.1/2 million customers.

All its electricity customers on Standard Tariffs - including those with pre-payment meters - will benefit from the 10% price cut.

BBC News

The 10% cut is based on standard tariff, average annual single rate consumption, rounded average across all regions and across Monthly Direct Debit, Pay as You Go Energy and Prompt Quarterly Cash/Cheque payment methods.

Centrica News

darthpaul

Link to story here - http://news.bbc.co.uk/1/hi/business/8037239.stm

1carminestocky

Was the article written by Ali G? Pffttt...standards at the BBC nowadays. :rolleyes:

The cut affects 4.5 million customers and the company insists it makes it the cheapest electricity supplier in the Britain.

Interesting development all the same...

worried_jim

This is good news, however does anyone know how this will affect customers on-Click Energy 6 for dual fuel?

1carminestocky

It says only standard tariff so I'm assuming it won't have any effect - apart from narrowing the gap between online prices and paper tariffs. Makes me wonder whether this move is in response to the regulator (remember them?) allegedly investigating the proliferation of 'loss leader' online tariffs.

PS I can't believe there are still 4.5 million punters paying BGs standard leccy tariff, lol. What a sad indictment of apathetic Britain. Or, as BBC would put it, apathetic the Britain.

worried_jim

So it could be time to shop around then ?

CarlMC_2

Only ones not changing are Fixed tariffs:

http://www.britishgas.co.uk/existingcustomers/electariffs.html

jimexbox

CarlMC wrote: »

Only ones not changing are Fixed tariffs:

http://www.britishgas.co.uk/existingcustomers/electariffs.html

I would work out the price cut yourself, on your own tarrif before accepting a headline/press release as proof.

We all know how Eon passed on their stunning 9% cut a few months ago. By altering different tariffs in different region by vastly different amounts, plus cutting online discounts. If BG are genuine, well done and about time. I would reserve judgement.

1carminestocky

jimexbox wrote: »

I would work out the price cut yourself, on your own tarrif before accepting a headline/press release as proof.

We all know how Eon passed on their stunning 9% cut a few months ago. By altering different tariffs in different region by vastly different amounts, plus cutting online discounts. If BG are genuine, well done and about time. I would reserve judgement.

Good advice. The %tage figures are broadly similar but the important bit (what the punters pay) is very revealing:

Original Click Energy 2 Tariff (launched 2006 but long since superceded, of course)

The good news is we're dropping our electricity prices and from 7th May 2009 you will be paying less for your electricity. As a Click Energy 2 customer your prices will decrease on average 6% and your prices will be on average £40 less than our Standard tariff.

Websaver 2 tariff (BGs shiny new online tariff).

The good news is we're dropping our electricity prices and from 7th May 2009 you will be paying less for your electricity. As a WebSaver 2 customer your prices will decrease on average 6% and your prices will be on average £115 less than our Standard tariff.

A £75 per year discrepancy on 'average' leccy consumption of just 3300 kwhs! I wonder how many punters BG have on Click 2 thinking they are on BGs 'online tariff so therefore the cheapest tariff they do' and blissfully unaware that the tariff they are on may actually be an online tariff but it's nowhere near their cheapest tariff? The regulator should put a stop to this wholly discredited business practice. If you sign up to BGs online tariff because it's their cheapest tariff that's EXACTLY how it should remain for EVERYBODY.

CarlMC_2

Just worked out my last bill as if it were on the new rates for my tariff, CE4. It was £76.17, now it works out as £72.13, approximately 5.3% lower. On CE4 the decrease is all taken from the Tier 2 charge, Tier 1 dropping by .001 of a penny, so higher users will save more comparitively.

Plushchris

CarlMC wrote: »

Only ones not changing are Fixed tariffs:

http://www.britishgas.co.uk/existingcustomers/electariffs.html

Hmmm

It doesnt say that the online prices are dropping though does it? The way I read it is that online prices are already cheap so they wont be dropping,