The latest to announces cuts is Powergen, a subsidiary of E.ON, which has gone for announces price decrease for residential customers 16% off gas and 5% off electricity, crucially this is “cheaper than British Gas.”
The offer is effective from 30 April 2007 and like BG’s offer leaves consumers waiting to feel the benefits of a wholesale market price that has plunged since before the new year in response to new gas import capacity.
Nick Horler, managing director of Powergen, said: “We’ve been very aware of the concerns of our customers over rising energy costs in recent years and, now the wholesale market appears more stable, we’re pleased to be able to reduce our prices.”
Scottish and Southern Energy (SSE) also announced cuts, but these began from 1 March, and include 12% off gas and 5% off electricity.
Adam Scorer, director of campaigns for consumer group energywatch, said: “The small reductions in electricity prices announced by most suppliers are a real cause for concern. There has been a substantial dip in the wholesale cost of electricity in recent months yet consumers will see negligible reductions in their bills. As companies respond to falling wholesale costs consumers will expect cuts for both gas and electricity.”
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