Customers on pre-payment meters could be tempted to switch gas provider following news that British Gas has brought its prices in line with those paid by customers paying by cash or cheque.
British Gas now claims to be the cheapest of all energy suppliers. While prices for standard gas customers with British Gas fell by seven per cent yesterday, those on pre-pay meters with the firm received a nine per cent drop, as the company removed the price differential that had been in place for such customers.
Chief executive of the National Housing Federation David Orr said: "We're delighted that British Gas is to equalise permanently the tariffs it charges to pre-pay meter users with those charged to customers on quarterly bills."
He added that the move will mean that almost one million will now have access to cheap energy.
Despite typically being on lower incomes, pre-pay customers often end up paying a premium for power from their energy suppliers, although the latest move from British Gas removes this price difference.
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