Last week, British Gas made a bold yet popular move to reduce its standard household gas prices by an average of 7%. The cuts have been applied with immediate effect and are thought to benefit approximately 8 million households across Britain. British Gas also suggested the 7% reduction in prices will translate to an average saving of £55 over the year.

The price cuts made by British Gas have come as a surprise to many, as the market conditions are currently such that energy companies are expected to hike up domestic bills rather than reduce them. Factors such as the weakened economy and state plans to implement more renewable energy systems have conspired to produce a bleak outlook so far as domestic energy bills are concerned. Furthermore, a number of industry experts have suggested that Britain is now dependent on foreign gas imports to sustain the country’s energy requirements, as production rates have failed to keep pace with demand.

However, the major energy companies in Britain have attracted considerable criticism from Ofgem, which has argued falling wholesale costs have not always been passed on to consumers. As such, the leading energy companies have secured massive profits during recent years as a result of passing costs but not savings on to consumers. Consequently, the price cuts by British Gas are likely to have surprised many industry experts and rival suppliers, which has led to fresh hopes that a new price war will emerge in an era of increased costs and fuel poverty.

British Gas has sought to remind customers its most recent price drop is the third of its kind within the past 12 months. In a statement to the media, the company said: “At British Gas, we know household budgets are stretched and our customers are concerned about the effect the recent cold weather will have on their winter fuel bills. The latest price cut means, no matter where you live in Britain, British Gas is offering, on average, the cheapest standard gas, electricity and dual fuel prices – beating all other major suppliers”. Nevertheless, Ofgem maintain a 25% rise in domestic energy bills is likely by 2020.

British Gas have today announced it’s cutting its standard gas prices by an average of 7% – this makes British Gas the cheapest electricity and gas supplier at time of writing. Customers can sign up online to British Gas WebSaver 6 online tariff or choose the standard tariff. The full announcement released this morning is as follows:

BRITISH GAS CUTS STANDARD GAS PRICES BY AN AVERAGE 7% – IS NOW THE CHEAPEST GAS AND ELECTRICITY SUPPLIER THROUGHOUT BRITAIN

British Gas, the largest residential energy supplier in Britain, has today cut its standard gas prices by an average 7%.

The price cut, which will benefit 8 million households, takes effect immediately and makes British Gas, on average, the cheapest supplier of standard gas and electricity right across Britain – no matter which way customers choose to pay. The change will save the average gas customer £55 a year.

This is the third time British Gas has cut prices in the past 12 months – cutting a total of £187 off the average annual dual fuel bill.

Last year, the company cut both standard gas and electricity prices by an average 10%.  The electricity price reduction in May 2009 made British Gas on average the cheapest supplier of standard electricity across Britain; it has remained unchallenged by any major supplier in this position ever since.

Today’s price cut means the company is now also the cheapest major supplier of standard gas at average consumption – and therefore of dual fuel – right across Britain.

Announcing the gas price cut, British Gas Managing Director, Phil Bentley, said:

“At British Gas, we know household budgets are stretched, and that our customers are concerned about the effect the recent cold weather will have on their winter fuel bills.

“I’m pleased we’re able to offer our customers some extra help with this gas price cut – and that we’re able to do this while it’s still winter, allowing our customers to really feel the benefit.

“This latest price cut means that, no matter where you live in Britain, British Gas is offering on average the cheapest standard gas, electricity and dual fuel prices – beating all other major suppliers.

“But, at British Gas, we know that cutting prices is just part of the picture in helping our customers cut their fuel bills; we’re also doing more than any other supplier to help our customers use less energy.  As well as cutting prices three times in the past year, we have been helping our customers improve their energy efficiency and cut their energy use by 7%.”

British Gas has also removed the price ‘differential’ for gas pre-payment meter accounts.  This means British Gas’ pre-pay gas customers are now paying, on average, the same for their energy as customers who pay by cash or cheque.  British Gas has, for some time, been working to become more efficient, improve customer service and cut costs for its pre-pay customers.

As if to prove a point in the wake of the Copenhagen climate talks, mother nature has demonstrated the effects of severe weather changes notably to Britain, Europe and eastern US. Although referred to by some weather experts as a ‘cold snap’, the ice, sleet and snow that has gripped many parts of the world during the past week shows little sign of relenting. Snow conditions in the US have reached blizzard proportions, with around 16 inches of snowfall reported in many states and up to two feet predicted in New England.

In Europe, scores of people have died as a result of freezing temperatures, whilst southern Germany recorded temperatures as low as -33 centigrade and thousands of passengers travelling between the UK and France suffered badly following the breakdown of the Eurostar network. As the predicted effects of climate change include the possibility of a new ice age, it is not difficult to draw parallels between this extreme ‘cold snap’ and what is known about global warming.

At this difficult time of the year, it is important that households keep central heating systems running throughout the day and night – if only to avoid problems with freezing pipes and broken down boilers. However, high domestic fuel prices have forced many consumers to reduce their energy consumption recently, especially during the Christmas period. As such, people can be forgiven for setting aside plans to give their homes an environmentally friendly upgrade.

Despite this, homeowners may wish to spare some thought to a British Gas scheme quietly announced on the same day the Copenhagen talks commenced. The Pay As You Save pilot scheme will be available for up to 100 homes initially and provides homeowners with £10,000 to make their properties more energy efficient. The £10,000 is available in the form of a loan which can be repaid over a 25 year term through the money saved by reducing bills or the profits generated from supplying energy back to the National Grid.

British Gas is introducing an innovative new service, called British Gas EnergySmart, to enable customers to monitor the energy they use, and reduce bills. Householders using the scheme will save an estimated £110 per year on utility costs, and will also qualify for a £40 introductory rebate.

Instead of receiving estimated bills once a quarter, the new British Gas EnergySmart service will enable customers to log-in online to view their energy bills and pay monthly statements via the Internet. They will also be able to monitor usage, and set targets for energy reduction, as well as a host of other functions. Using an electricity monitor provided free by British Gas, householders will be able to assess how much energy their appliances are using and then cut down where required. This puts customers in control – rather than waiting for a dreaded bill to arrive, they can take steps to save on costs. It is estimated that by using this system householders will save approximately £110 per year on utility bills. They will also receive an introductory rebate of £40 from British Gas.

Under the scheme customers submit their own meter readings online and will receive reminders when a meter reading is due; this means accurate bills rather than estimates. Because bills are online rather than paper statements, it is also kinder to the environment. Using the Internet service consumers can choose from a range of payment options including direct debit and online payment by debit or credit card. The sophisticated online tracking tools also enable them to easily keep a check on the amount of energy used and the cost.
Signing up for British Gas EnergySmart is straightforward both for existing and new customers and can be done via the British Gas website.

Although today’s central heating boilers conform to strict regulations, undergo annual safety inspections and are generally built to last, it is common for parts to break down or become faulty.

Moreover, central heating systems generally are prone to the odd leak or blockage but when central heating systems experience problems the effects can be disastrous, with flooded homes and potentially unsafe gas appliances wreaking havoc. Thus, it is understandable that many customers choose to indemnify their properties against such mishaps by taking out one of the many gas, plumbing and electricity insurance policies that are available.

Indeed, it is commonly perceived that an insurance policy, which typically requires monthly instalments or an annual fee to be paid, is the cheaper and more convenient option to having to call up a private Gas Safe engineer, electrician or plumber when something goes wrong. To all those customers who have experienced cowboy private traders, the insurance policy option is an attractive one if only to ensure that trained professionals will carry out the work within an agreed time. Furthermore, whilst no policy will cover every possible central heating related hazard, there are comprehensive options that take care of most problems at no additional cost.

However, a recent article published in the Guardian’s online service suggests that British Gas HomeCare policyholders would be better off saving their money in a savings account than continuing with their policies, which are set to rise by up to 50% during the coming months. Indeed, Which? research shows that 90% of households would profit from letting their policies expire (beware of automatic renewals, though) and setting aside the premium funds in the event of problems arising.

It was reported recently Ofgem, which is responsible for the regulation of electricity and gas markets across Great Britain, feared UK domestic energy bills would rise despite increased profits for the leading energy companies.

Although Ofgem clarified that it was powerless to interfere with the prices set by energy companies such as E.ON and British Gas, it advised that savings from lower wholesale fuel costs were not being passed on to consumers and the major energy companies were contemplating further price rises. Following a detailed study by Ofgem, four probable scenarios have been identified in respect to the future of domestic energy and, unfortunately for consumers, all involve a hefty rise in prices.

The first two scenarios outlined by Ofgem refer to the drive for renewable forms of energy. Ofgem has proposed that the various green energy initiatives will take their toll on domestic energy companies and, in turn, its consumers. Under the Green Transition scenario, Ofgem argues rapid economic recovery and expansion in green renewable energy measures will lead to a decreased demand for gas but a significantly higher demand for electricity. Domestic energy bills will rise 23% by 2020 under the Green Transition model. According to the Green Stimulus scenario, consumer bills will rise by 14% in the same period as a result of slower economic recovery and green investment.

Another rise of 22% is predicted if the Slow Growth model takes effect, with the economy proving lethargic in shaking off the recession. However, the main threat to consumer bills appears to be that of a Dash for Energy scenario, which will see domestic bills rise by a massive 60% during the same period. Under the Dash for Energy model, Ofgem predicts international security concerns will take precedence over environmental targets, which will ultimately result in increased competition between nations for limited fuel supplies.

With Christmas just around the corner it’s a good time to start thinking about boiler breakdown cover, with engineers becoming busier in the colder months it’s all the more important to have a boiler service contract on hand to ensure you and your family are covered in the event of an emergency boiler or central heating breakdown.

Boiler service contracts range in cover from just your boiler up to and including drains, plumbing, central heating pipes & radiators and also electrical care. British Gas HomeCare offer all of these via their boiler insurance product right up to British Gas HomeCare 400 which covers every aspect of  your homes utilities, what’s more until the 31st December they’re giving away 1 month free – it’s very rare for British Gas to provide discounts or vouchers on the HomeCare product so make sure you sign-up before the offer expires.

If you’ve ever needed a plumber in a hurry then you’ll know how difficult it can be, especially as the nights start drawing in and temperatures drop heating engineers are in demand and as such are not only difficult to get hold of but a nightmare to respond to emergency boiler breakdowns.

British Gas have recognised and addressed this problem realising that not everyone wants to be tied in to a lengthy service contract or any one boiler service supplier. With a team of over 8,000 Gas Safe registered engineers British Gas are well placed to respond to heating and boiler breakdown emergencies in a way that suits you, not just the engineer. This comes in the way of British Gas’s One-Off Boiler Repairs allowing you to receive a fixed price quote including all parts and labour for boiler breakdowns, you don’t need to be a British Gas customer and there’s no contract. You can find out more here.

On the back of a deep recession, from which the British economy is only just beginning to emerge, it is unfortunate that times are unlikely to improve for many domestic energy consumers. In fact, there are indications that energy prices are likely to rise over the winter and, if there is one term that has punctuated the plight of millions more than any other during the recent global downturn, it is ‘fuel poverty’.

Unfortunately, fuel poverty, which essentially describes the condition of being unable to afford adequate energy supplies, is a problem that already affects the most financially vulnerable in the community.

Therefore, it is with considerable dismay that Britain’s leading six energy firms, which comprises British Gas, EDF Energy, E.ON, RWE, Scottish Power and Scottish and Southern Energy, have rejected calls to reduce domestic energy bills. Whilst this is unsurprising in itself, the failure to lower prices must be framed in the context of falling wholesale energy costs. Indeed, Ofgem, which called for lower domestic bills but is only responsible for regulating the competitiveness of the energy market, has already conceded that the leading six energy firms are set to increase their profits if the lower wholesale prices are sustained. As there is no indication that wholesale prices will increase in the near future, the energy companies’ failure to pass on these savings to customers is objectionable to say the least.

Furthermore, with the news that domestic bills are likely to increase over the winter, this discrepancy is set to widen further. To put the matter in perspective, despite the energy companies’ claims that other costs are pushing up prices, they will receive an average annual gross profit per consumer of around £170, which compares to £110 over the past three years.

DIVE IN WITH BRITISH GAS THIS WINTER

British Gas have teamed up with Swimming pools across the country to offer its Customers a free voucher for a swim. They can even bring the family along allowing you to make a splash without splashing out.

With this, Customers need to simply complete their details via the site and receive their voucher by their preferred method!

This promotion will run from now until the end of December 09′.