2nd Feb 2015 10:04
LONDON (Alliance News) - Good Energy Group PLC Monday joined its larger peers by cutting its gas prices in response to lower wholesale prices, but also went a step further than some of the so-called 'Big Six' suppliers by also cutting its electricity prices.
The AIM-listed energy supplier said it will cut its gas prices by 3.2% and its electricity prices by 2.1% from mid-April. It said its dual fuel customers will save about GBP33 off their annual bill, compared with the GBP28 a year saving that customers of the 'Big Six' will achieve after those companies cut gas prices.
The company said the move means it has the cheapest dual fuel tariff of any electricity company deriving all its electricity from renewable sources, GBP23 lower that Ecotricity.
The recent fall in wholesale gas prices has prompted all the 'Big Six' firms to cut gas prices, although critics says the cuts are not deep enough and the companies aren't passing on the full extent of the wholesale gas price fall to customers. The energy suppliers counter that not all of a customer's bill is made up of wholesale gas prices.
Scottish Power Ltd, part of the Iberdola Group, is reducing domestic gas prices by 4.8% from February 20 and has launched a new fixed-price tariff that has an average dual fuel bill of GBP930.
British Gas, part of Centrica PLC, announced it would cut its customers' average energy bills by 5% from February 27, while E.ON is to slash its standard gas price by 3.5% of annual gas bills. nPower also said it would be reducing customer bills by an average of GBP33 per year across both gas and electricity for those who saw an increase in their bill during December 2014.
SSE PLC said it will cut household gas prices in Britain by 4.1% on April 30, a lot later than the other firms, whilst EDF Energy was the last of the Big Six to introduce a price cut, announcing it would only be reducing prices by 1.3% as it made previous cuts in 2014, including a 3.8% reduction in December alone.
UK energy market regulator Ofgem recently urged customers to switch to a fixed price energy tariff, despite the major firms committing to cuts to their variable tariffs in February and April, and said independent suppliers, rather than the Big Six suppliers, are offering the cheapest deals.
Good Energy shares were down 1.8% at 215.00 pence Monday morning.
By Steve McGrath; [email protected]; @stevemcgrath1
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