British Gas and Southern Electric and Scottish Hydro (SSE) are to cut the cost of their energy prices, as both energy companies try keep pace with EDF Energy.
The leading energy giant British Gas has announced plans to slash their domestic electricity costs by 5% with immediate effect. SSE is following suit and within hours of the British Gas announcement, they too confirmed they were slashing prices. SSE customers will see their gas bill reduced by 4.5% as of 26th March.
EDF Energy recently unveiled plans to cut its domestic gas tariff by an average of 5%, which will come into effect on 7th February.
The energy company said it took the decision after the amount of energy used over the winter dropped as a result of mild temperatures.
EDF Energy have said the price cut will mean that customers will see their typical annual energy bill drop by £38.
But EDF Energyís competitors were keen not to be outdone. British Gas has cut its electricity prices by 5%, with immediate effect. SSE will reduce its gas tariffs by 4.5% from 26th March.
It is welcome news for British Gas customers. In August last year the energy company put up electricity prices by 16% and gas prices by 18%.
British Gas has said that the 5% reduction in electricity tariffs will mean a saving for customers of £24 on their annual domestic bill.
SSE, which runs Southern Electric and Scottish Hydro, said that more than three million of its customers would see a drop of £28 on their annual gas bill.
However, SSE also raised gas and electricity tariffs last year. The energy company raised gas prices by 18% and electricity prices by 11% in September.
Consumers are now expecting other energy companies to follow suit, or risk being left out in the cold by their competitors.
ìNow that two of Britain’s biggest energy suppliers have moved to cut their prices, the rest of the big six will be feeling the pressure to follow suit,î said Ann Robinson, Director of Consumer Policy at uSwitch
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