British Gas accused of short changing customers

Despite offering a five per cent price cut, British Gas has come under fire for not doing more to help customers reduce their energy bill.

Energy experts say that reductions to fuel bills due to the price cut will save 6.9 million households around £35 a year. However, they fail to reflect the continued low cost of wholesale energy.

The five per cent reduction on gas prices was announced in July and came into effect on Thursday (August 27th). However, critics say that British Gas, the country's biggest energy supplier, is not doing enough for consumers – and that cuts should have been higher.

Price comparison website uSwitch accused the company of "short-changing its customers. It says the price cuts should have been much larger, considering the on-going low-cost of wholesale energy.

Customers should get a "decent price cut"

Ann Robinson, policy director at uSwitch said that as the UK's biggest energy supplier, British Gas should be leading the market and setting a trend for others to follow.

"Although the price cut is welcome, I wanted [British Gas] to do far more and almost shame the other companies into action. But instead we get a price cut that is far smaller than it should be. It short-changes their customers and lets the other suppliers off the hook," she explained.

Ms Robinson says all of the suppliers should be giving customers a "decent price cut", reflecting what has happened to wholesale prices.

A spokesperson for British Gas said the company has always done as much as it could for consumers.

"We're cutting gas prices by five per cent for almost seven million customers, taking £35 off the average annual bill," the spokesperson said, noting that this is the second time prices have been cut in six months. In total, British Gas says the average customer is saving more than £72 a year.

At noon on Thursday in London, share prices in Centrica, the parent company of British Gas, were up 1.16 per cent to 238.83p.

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