British Gas And EDF To Trim Gas Prices

British Gas claims it is leading the way on cutting energy bills among the 'big six firms', announcing a 5.1% reduction on all of its gas tariffs from 16 March.

It made its announcement shortly before rival EDF (Paris: FR0010242511 - news) became the last of the major firms to confirm gas bill cuts in recent weeks as wholesale prices plunge.

EDF Energy said its gas tariffs would fall 5% from 24 March.

However, British Gas raised the stakes in the battle for business among the big six by claiming it was alone in reducing gas costs three times since the start of 2015 - with 5% falls taking effect in both February and August last year.

It said its customer base of 6.8 million households would benefit from the latest move, saving an average of £31.

Mark Hodges, the head of its energy supply and services business for the UK and Ireland (Other OTC: IRLD - news) , said: "British Gas was the only major supplier to cut prices twice last year, ensuring customers’ bills were lower through the winter.

"Today we’re announcing a further reduction to ensure our prices remain market-leading.

"Taken together, our three price reductions will bring the average household’s annual energy bill down by almost £100.

"British Gas will be cheaper than 95% of the market, for a typical household on a standard dual-fuel tariff. Competitive pricing is the way to retain existing customers and win new business in this hard-fought market."

EDF said its price reduction would make bills cheaper for around 900,000 customers.

Both companies, along with rivals npower, SSE (Other OTC: SSEZF - news) , E.ON and ScottishPower, have faced criticism for being too slow to pass on benefits from falling wholesale prices while consumer groups have also questioned the size and timing of the cuts - given they will not take effect until spring.

EDF's managing director of customers, Beatrice Bigois, said: "Our prices are under constant review and today's announcement reflects falls in wholesale gas costs.

"There are other costs impacting customers' energy bills that are beyond our control - these increased steadily during 2015."