British Gas is set to reduce gas prices by 17% and electricity prices by 11%.
Karen Darby, CEO of SimplySwitch.com, said: “As wholesale prices have dropped significantly, this price cut from British Gas is not before time. It is a step in the right direction and will help the many families who struggle to pay their energy bills. However, as its energy prices have rocketed by 86% for gas and 76% for electricity since January 2004, British Gas still has some way to go.
“The energy market is very competitive and the next few months are set to be very interesting. We expect the other providers from the ‘big six’ to follow suit, drop their prices and also launch more innovative and competitively priced products.
“Scottish & Southern Energy has already said that it is set to reduce its prices in the next few months and npower recently reduced its tariff for its ‘sign online’ customers – both proof of the price war yet to happen.
“After three years of price rise misery, consumers should benefit from the falling prices the market first saw when it was deregulated.”