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Fuel bills to be cut for millions
Robert Lea11 Feb 2009
Millions of utility bills are set to fall after four energy suppliers pledged to follow cuts by British Gas and Southern Electric.
Bosses from the foreign-owned suppliers E.On, RWE npower, EDF and Scottish Power were embarrassed into declaring they will cut charges after MPs demanded to know why they have delayed following the British-owned companies'lead.
E.On retail director Jim Macdonald told the energy select committee today the chances of an imminent cut are "increasing rather than decreasing".
Martin Lawrence, supply director of EDF, said the firm is "actively looking" at cuts. Nick Horler, chief executive of Scottish Power, said: "We are likely to move soon." Guy Johnson, director at npower, said it is cutting "social tariffs" to vulnerable customers.
British Gas this month cut gas charges by 10 per cent while Southern Electric is lowering electricity prices by nine per cent.
Dual fuel bills paid by direct debit currently average £1,200.
Reader views (4)
Having the baulk of our energy supplies in foreign hands has led to the situation that we will all ways have to pay more. These foreign owned companies are constrained in their own countries by what their governments allow them to charge. In the UK they are allowed to charge what they believe they can get away with.
The whole sale price of gas has been less than half the price it was a year ago for over 6 months, and these foreign companies have been charging the UK consumer is considerably more for the same commodity as they do at home.
Clearly a cartel of the worst kind operates in the UK
- Ian, Reading, England, 11/02/2009 23:18
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This is just another example of how free markets and private enterprise don't work for the customers but work very nicely for the power companies who have formed a cartel. Selling our companies to overseas buyers was another dreadful mistake made by the Thatcher Government. Problem is that Cameron believes the same nonsense.
- R Pitts, Dulwich England, 11/02/2009 16:37
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With a country in financial crisis, people trying to pay ever increasing bills, and these companies just jumping on the bandwagon to profiteer from peoples hardship and now they reduce fuel bills just in time for the spring time, I dont know how they live with themselves. They are as bad as the bankers and should be made to reimburse people the profits they have made off of them.
- Jw, UK, 11/02/2009 15:58
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The chances of an imminent cut are "increasing rather than decreasing"......yeah right, pigs might fly!
Let's see, cut prices by a fraction of what they should really fall by, just as we enter the summer months. Then just as we enter Winter, you watch, the prices will go back up again.
- Gavin, Maidstone, Kent, 11/02/2009 15:09
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