8th Feb 2007 07:00
8 February 2007 CENTRICA PLC: BRITISH GAS ANNOUNCES ENERGY PRICE CUTS British Gas today became the first major energy supplier in the UK to announce areduction in its tariffs for residential gas and electricity customers. From 12March 2007 British Gas will cut its standard tariffs for gas by 17 per cent andfor electricity by 11 per cent. As a result, the average annual dual fuel billfor its customers will fall by £167 to £953(1). For the overwhelming majority of UK energy customers, British Gas will be thecheapest gas supplier. Its Click Energy 2 online tariff will be the cheapestdual fuel energy price available in the market.(2) British Gas is also launching the UK's largest social tariff, the EssentialsTariff, at a cost of £40 million per annum. Essentials will lower gas andelectricity bills further still for up to 750,000 customers defined by theGovernment as vulnerable. Prepayment meter customers who qualify for Essentialswill see their energy bills drop by 24.6% or £285 per annum.(3) Phil Bentley, Managing Director designate, British Gas said: "Not only are wenow the cheapest energy supplier both for gas and for dual fuel across Britain,we are also the greenest(4). We are taking the lead in passing on the benefitsof falling wholesale gas prices. As a result of this move our customers will bebetter off and for many vulnerable households that struggle to balance theirbills, our social tariff will remove the burden of not being able to access ourcheapest prices, typically direct debit, irrespective of their method ofpayment." Sam Laidlaw, Chief Executive, Centrica said: "The billions of pounds we havecommitted to gas contracts underpinned the construction of new underseapipelines that are now delivering additional gas supplies to the UK. These newsupplies of gas have directly led to the fall in wholesale prices which we cannow pass on to our customers. Our price cut still enables British Gas to make asustainable margin in 2007 and allows for further investments in the future." As a further measure for customers seeking reassurance over volatile energyprices in the future, British Gas is also launching a new product called PriceGuarantee 2008. At no extra premium and with no early exit penalty, customerswho take this product will be guaranteed our new cheaper prices until 31 May2008. \* TDual Fuel prices Direct Debit Cash /cheque Pre Payment as 12/3/07-----------------------------------------------------------------------British Gas £874.44 £953.02 £1034.80-----------------------------------------------------------------------Average competitor £930.47 £991.18 £1051.98-----------------------------------------------------------------------npower £965.75 £1028.75 £1122.35-----------------------------------------------------------------------Bills are based on industry average annual consumption of 20,500 kWh for gas and 3,300 kWh for single-rate metered electricity-----------------------------------------------------------------------\* T Ends \* TMedia Relations Contacts:Alan McLaughlin: 01753 494105/07789570598Andrew Turpin: 01753 494088/07979565125Anne Morton: 01753 494106/07979566274 Centrica Investor Relations: 01753 494900\* T Notes to Editors All price comparisons are based on industry standard average annual gasconsumption of 20,500 kWh and electricity consumption of 3,300 kWh on a singlerate credit meter (except 3 below), are rounded and include VAT at 5%. Assumesall quarterly bills paid within 28 days of bill issue date. Excludes any promptpayment discount that may be available from other suppliers. Electricity pricereductions averaged across all electricity regions - actual decrease will varyby region and meter type. 1.Based on payment quarterly by cash or cheque. 2.Based on a comparison on uSwitch (excluding social tariffs) as at 7 Februarybased on our prices as at 12 March in each region. 3.Compares prepayment tariffs as at 11th March 2007 to monthly direct debittariff as of 12th March 2007 at the same gas and electricity consumption. 4.British Gas has the most carbon-efficient power generation of all the major UKsuppliers. The annual CO2 emissions from British Gas customers using 3,300Kwhelectricity annually is 1.17 tonnes/pa. The average CO2 emissions from othermajor suppliers' customers is 1.814 tonnes/pa, or 55% higher. Phil Bentley is currently Chief Financial Officer of Centrica plc, the parentcompany of British Gas. He will take up his new role as Managing Director ofBritish Gas at the end of this month. Copyright Business Wire 2007Related Shares:
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