The UK’s largest energy retailer, British Gas, has announced a drop in its electricity prices. The 5% cut will come in effect as of today and will affect any customers who buy electricity from British Gas. The move comes a day after EDF Energy announced plans to cut its gas tariff by the same amount.
British Gas explained why they were able to cut the cost of electricity while their competitors EDF Energy could drop their gas prices.
A spokesperson told ELN: “There is a simple explanation. We’re the biggest gas supplier and so we have to buy further ahead to make sure we have the supply for our customers, which means our prices are locked. When it comes to electricity we have much more flexibility.”
The price cut re-establishes British Gas as the cheapest major standard electricity supplier, on average, in Britain. British Gas says customers on their single rate electricity tariff will save £24 in a year.