All of the ‘Big Six’ energy suppliers have now announced gas price cuts, as have a number of the smaller suppliers. They took their time, and it’s some welcome news, but do you think these price reductions are enough?
Today, EDF and British Gas became the last of the Big Six energy companies to announce they are reducing their standard gas prices. EDF will drop their price by 5% from 24 March and British Gas will drop by 5.1% from 16 March (British Gas announced a previous drop of 5% in August 2015).
Gas price reductions from the Big Six are:
- British Gas: 5.1% cut to standard gas price from 16 March
- Npower: 5.2% cut to standard gas prices from 28 March
- SSE: 5.3% cut to standard gas price from 29 March
- Scottish Power: 5.4% cut to standard gas prices from 15 March
- EDF: 5% cut to standard gas prices from 24 March
- Eon: 5.1% cut to standard gas prices from 1 February
Price drops are always welcome news, but we’re not convinced it’s enough.
Worried about costs
The latest stats from our Consumer Insight Tracker reveal that 63% of UK consumers are worried about energy prices. And we know that this is a sentiment that will certainly ring true with many of you.
We’ve had an overwhelming response to our Fair Energy Prices campaign. More than 355,000 of you have signed the campaign, and many of you shared with us your concerns about energy bills
We’re still in winter and no one should have to decide whether they can afford to heat their home when it gets cold. We need action sooner, not later.
In 2015 our research found that household energy bills should be reduced to reflect lower wholesale energy costs. And then last month, we saw in the news that wholesale gas and electricity had fallen by nearly a third in year to a five year low.
There are many people in this country, particularly the vulnerable, who struggle to pay their energy bills in winter. While we’re pleased to finally see these price cuts from the Big Six, the similarity between the cuts announced raise some serious concerns about how competitive the energy market really is.
So what now?
Well, this morning the Secretary of State for Energy, Amber Rudd MP, said:
‘It’s a good start but the Government expects all suppliers to pass on reductions in the costs of supplying energy to consumers.’
The Competition and Markets Authority (CMA) has been investigating the energy market for some time now. We’re expecting an announcement on its final proposals for fixing the market imminently. With the average customer score for satisfaction from their energy company being just 53%, and the fact that price cuts are not being seen across all energy suppliers, it’s vital that the CMA fix the broken market sooner, not later.
So are you pleased to hear a reduction in energy prices? Or do you think that more needs to be done?