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British Gas a hot choice as country's cheapest domestic energy supplier

12 Nov 2009


Households are returning to British Gas after shake-ups at the formerly high-charging ex-monopoly because it is now the country's cheapest domestic energy supplier.

However, there is no sign that British Gas, the nation's largest residential energy group, will cut prices although consumer groups feel that households are still being over-charged and that it could cut prices further.

Centrica, the parent company of British Gas, said household energy customers are returning at a rate of 50,000 a month and more people are also signing up to contracts to have their boilers serviced.

In a trading statement it said that from the end of June to the end of October it added 200,000 gas and/or electricity accounts taking its total to 15.7 million.

The number of services accounts rose by 100,000 to 8.3 million. While the big energy suppliers are refusing to budge on price this winter, household bills look like they are coming down as consumers turn down the heating. British Gas figures show that average consumption is down 7% this year so far.

Consumer groups say energy suppliers are ripping off customers.

Website uSwitch pointed to the 80% leap in profits posted by British Gas in July when earnings rose from a 2008 half-year result of £166 million to £299 million and to yesterday's 36% rise in profits at British Gas rival Scottish and Southern Energy.

“These company statements clearly demonstrate the scope for further price cuts,” said uSwitch policy director Ann Robinson. “They reveal an emerging pattern of significantly increased profits.

“Last year suppliers raised prices by an eye-watering 42% or £381. This year they have cut by 4% or £54.”

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If they keep raising to retail price and freezing customers out by excessive over pricing, perhaps we should consider turning our gas off for a week, and see who squeals first yes?

- Carl Barron, Christchurch, Dorset, 12/11/2009 16:30
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