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British Gas & SSE cut energy bills

A pound sign light bulbMore than five million British Gas customers are set to benefit from reductions in their energy bills as it lowers electricity prices by 5 per cent.

The energy giant has said 5.3 million of its customers will see bill reductions, with prices due to fall by 5 per cent on average.

The average electricity bill will decrease by £24 with the price drop to take effect immediately.

Last August, British Gas raised its prices for electricity by 16 per cent while gas bills rose by 18 per cent.

Despite the electricity price cut, gas bills are not due to go down at present, the company indicated.

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."

SSE cuts gas prices

Energy firm SSE, also one of the UK’s big six energy suppliers, has also announced a price cut of 4.5 per cent  on gas from 26 March. 

SSE, which owns Swalec, Southern Electric, Atlantic and Scottish Hydro, raised gas prices by 18 per cent in September. 

EDF Energy was the first big six supplier to announce lower prices this year when it slashed its gas prices by 5 per cent on Wednesday.

And last week smaller supplier OVO Energy accounted a 5 per cent price drop in its dual fuel energy tariff.

Price cut 'flurry'

Lisa Greenfield, energy analyst at said: “We’re now seeing a flurry of activity in the gas and electricity market, with suppliers bustling to lower prices for their customers. 

“This morning alone has seen both British Gas and SSE announce price cuts and these come hot on the heels of EDF yesterday and OVO Energy’s cut last week. 

“Lower bills are always great news for consumer but after double digit rises last year these smaller cuts aren’t going to restore consumer confidence.

Switch and save

“Switching your gas and electricity supply through is easy and could save consumers £400*.

“We strongly urge customers to review their supply and if they haven’t done so already, switch to a dual fuel tariff and choose to pay by monthly direct debit for maximum savings.”

*10% of customers who switched gas & electricity (dual fuel) with saved at least £400.41 (Nov 2010 - April 2011), with 97% of switching customers achieving a saving.

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