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Leading gas company cut prices on energy bills

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Leading UK Company British Gas has lowered their electricity prices to offer a rest to customers who face high bills from the winter.

It has been announced that electricity bills are set to be reduced by 5%; however gas will stay the same due to how energy is traded. Pressure on energy companies in the UK has risen over the last couple of months as people are feeling the pinch of household bills and other big energy suppliers have announced they will also drop their prices putting pressure on British Gas to do the same.

The British energy supplier will reduce the bills of over 5.3 million customers who will be expecting their latest bill over the next couple of months.

Ian Peters, Managing Director of Energy at British Gas, said: “We want to keep prices as low as possible for our customers.

“Household budgets are stretched and we are doing everything we can to help our customers keep their bills down.

“This price reduction means British Gas is once again offering the cheapest standard electricity, on average, of any major supplier.”

The price drop will start immediately and could knock £24 off an average household bill, which will be welcomed by customers who have seen their gas bill increase by 19% last year and electricity by 16% which was estimated to add £190 to a duel fuel bill.

Energy prices were expected to increase further this year if the Governments ‘Green Deal’ gets the go ahead which is set to revolutionise energy efficiency within British properties allowing improvements to be made without having to front the cost. 

Energy secretary Chris Huhne revealed green taxes will fund the shift to wind, solar  and nuclear powers and will pay for the Governments pledge to cut carbon emissions. If homeowners decide to support green taxes it is estimated they could save up to £94 a year on their fuel bills by 2020. So for people who take part in green saving the average estimated bill will be £1285 and for those who don’t will pay on average £1379.

It is expected that the current new energy cuts that have been announced today may be short lived because of the current financial climate. Energy bills have always been a problem for homeowners who see their bills rising and falling throughout the year and cannot budget due to the fluctuations.

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By Amanda Bainbridge