British Gas to cut gas prices by 5%

British Gas to cut gas prices by 5%

Centrica plc

15 July 2015

British Gas to cut gas prices by 5%

British Gas is to reduce household gas prices by 5%, cutting annual energy bills on average by £35.

• This second gas price reduction in six months will bring the average total saving to £72 for British Gas customers
• The price cut takes effect from 27 August, benefiting 6.9 million British Gas customers on Standard and Fix & Fall tariffs
• British Gas also this week launches the next generation of its innovative Hive smart thermostat and other new home technology products

Commenting on the announcement, Mark Hodges, Managing Director of British Gas, said:

“British Gas is committed to offering competitively priced products, and the price cut we’re announcing today demonstrates that. It’s the second price reduction from British Gas this year, bringing bills down by an annual average of £72.

“There are a range of costs that make up energy bills, some decreasing and others increasing. This reduction reflects our lower projected total costs for 2015 and 2016 and we’re pleased that customers will see the benefits in their gas bills ahead of next winter.

“We will also continue to help our customers understand and control their bills by leading the national drive to install smart meters, and by developing innovative products that offer them the latest technology to manage their energy usage.”

The gas price cut announced today is an average reduction of 5%, with any variations reflecting the cost of distributing energy to different regions.

Electricity prices remain unchanged despite the fact that several elements which make up the bill are rising steadily. British Gas continues to offer the cheapest standard electricity prices of all the large suppliers in 12 out of 14 regions across the country.

British Gas leads the way in helping customers understand and manage their energy use:

• Switching between tariffs - We were the first to start telling customers, in every bill, if there could be a better British Gas tariff for them. We charge no exit fees on our current available tariffs when customers are changing tariffs or switching.
• Controlling energy use - We continue to lead the nationwide roll-out of smart meters, with almost 1.5 million installed in homes, providing our customers with real-time information on their energy usage. Smart meters also mean an end to estimated bills.
• Hive Active Heating â„¢ - More than 200,000 people are also using our Hive Active Heating system to manage their heating and hot water from a smartphone or tablet. Today British Gas has launched the next generation of our Hive smart thermostat and app, alongside a suite of new home technology products. These include smart lights for the home; window, door and motion sensors; and smart plugs – each of which can be controlled remotely through the Hive app, enabling customers to manage their home more easily wherever they are.

Find out more at www.britishgas.co.uk or call us on 0800 048 0202.

ENDS

Note: All savings quoted are based on Ofgem average annual consumption of 13,500 kWh gas. Savings are averaged across all payment methods and regions.

Contacts:
British Gas Press Office 0800 107 7015
Centrica Media Relations 0800 107 7014
Centrica Investor Relations 01753 494 900

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