This is equivalent to three weeks’ gas use, or 32 pounds ($45) off an average annual gas bill.
Seeing as wholesale costs have been falling, there’s been a lot of chatter and yelling about gas bills, and after numerous complaints from customers, campaign groups got involved, and so too did energy regulator Ofgem. As large energy suppliers have to take in to account factors other than wholesale prices.
British Gas, EDF Energy, npower, and Scottish Power didn’t immediately say whether they would cut gas prices. This is long, long overdue, as the wholesale prices have been dropping quickly, while the energy companies made a decision to do nothing for the most part, other than scratch their arses.
Even though wholesale gas price movements could translate into a price drop of below 10 percent for a dual-fuel domestic bill, these other factors are also taken into account in the cut E.ON has announced today, he added.
“With wholesale prices predicted to remain low this year, consumers should be seeing bill reductions of at least 10% – around £120 a year – on both gas and electricity”, she said. Analysts have found that wholesale gas prices fell by 34% during 2015, and power prices fell by 23%. We will continue to keep all these factors under review’.
Citizens Advice chief executive Gillian Guy said that while E.ON’s cut was encouraging, the savings for customers would be “modest” and the energy giant also needed to lower electricity bills. This is yet further evidence that the energy market simply is not working for most United Kingdom households’.
In the provisional findings of its 18-month investigation published last July, the CMA found that United Kingdom energy suppliers are overcharging customers by a total of around £1.2billion a year.