Price Reduction

Price Reduction

Centrica PLC

BRITISH GAS CUTS ELECTRICITY PRICES BY 10% – IS NOW THE CHEAPEST ELECTRICITY SUPPLIER IN BRITAIN

British Gas, the biggest supplier of electricity to homes in Britain, which serves around one in every four homes, has today cut an average 10 per cent off its standard electricity prices.

The price cut for 4.5 million customers takes effect immediately, and makes British Gas, on average, the cheapest electricity supplier in Britain.

British Gas’ electricity rates are now as much as £111 lower than the local supplier. British Gas’ dual fuel prices for customers who pay by monthly direct debit are now, on average, the cheapest in the UK. The average annual dual fuel bill for a British Gas customer is now £1,127.

Today’s price cut follows the company’s 10 per cent cut in gas prices, which took effect on 19 February this year. British Gas was the first major energy supplier to lower prices for its customers this year. Together, these two price reductions – the biggest by any major energy supplier this year – will save British Gas customers an average £132 on their annual dual fuel bill.

Managing Director, Phil Bentley, said: “British Gas is offering existing and new customers the cheapest electricity rates in the market place.

“We want to do what we can, when we can, for our customers. When we were able to cut gas prices earlier this year, we did. And I’m pleased we are now able to cut an average 10% from our standard electricity prices and continue to help our customers during this economic downturn.”

All British Gas electricity customers on standard tariffs – including those with pre-payment meters – will see the benefit of the price cut.

British Gas has a strong record of pricing competitively on electricity. Since the start of this year, the company has grown the number of electricity customers by 40,000, which is an average of more than 2,000 each week.

Wholesale electricity prices have come down, allowing British Gas to pass a welcome saving on to its customers, while maintaining the robust level of profitability required to fund the investments needed to secure future energy supplies for Britain.

ENDS

Note to Editors

1. British Gas’ cheapest electricity is based on average single rate consumption of 3,300 kWh pa, comparing standard tariff prices on 7 May 2009

2. The 10% cut is based on standard tariff, average annual single rate consumption, rounded average across all regions and across Monthly Direct Debit, Pay as You Go Energy and Prompt Quarterly Cash/Cheque payment methods

3. British Gas’ monthly direct debit annual dual fuel bill is based on consumption of 20,500kWh for gas and 3,300kWh for single rate electricity and is a rounded average across all regions

4. The total saving of £132 is for a dual fuel customer at average consumption

Contacts

• British Gas press office: 0845 072 8002
• Centrica Investor Relations: 01753 494 900