British gas has recently implemented a 5% cut in gas prices, coming into effect at the end of August 2015. Whilst the 5% cut is expected to save 7 million British Gas customers an average of £35 on their annual energy costs, the UK’s biggest energy supplier still faced criticism with some industry experts saying that the price cuts did not go far enough to fully reflect the current low cost of wholesale gas and electricity.
Despite price cuts by all of the Big 6 energy companies this year, they continue to face pressure to further reduce gas and electricity prices, particularly in the face of increasing competition from a larger number of small energy suppliers which continue to offer a wide range of cheap energy deals.
In addition, the government’s Power to Switch initiative continues to encourage energy consumers to shop around for energy and switch to cheaper deals, at a time when it is estimated that 13.5 million UK households are paying £2.7 billion more than they should be for energy by not shopping around and switching supplier.
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