Price cuts 'could be seen soon' - 10/01/2012

People looking to get cheap gas and electricity prices may be able to benefit from cheaper tariffs from the major energy suppliers in the near future.

Wholesale costs have dropped sharply recently, which has led to two smaller domestic energy suppliers opting to pass these reductions on to consumers.

Last week, Ovo Energy announced it would be cutting prices for new dual fuel customers by five per cent effective immediately, while from February, individuals who get their gas and electricity supplies from the Co-operative Energy will see a three per cent drop.

Managing director of Ovo Stephen Fitzpatrick said the company offers cheaper and simpler alternative to the major energy suppliers.

Director of energyhelpline.com Mark Todd welcomed these moves and suggested it could spark a price war between the Big Six household energy suppliers.

He stated cuts of between five and ten per cent may be "just around the corner", which could see dual fuel bills fall by up to £135.

Mr Todd added: "A reduction of any sort would be welcomed by millions of customers who have been fighting a losing battle against shrinking disposable incomes and a seemingly relentless rise in the cost of living."

He noted wholesale prices have plummeted since the summer, with gas down by 32 per cent since early September and electricity dropping by 27 per cent from its peak earlier this year.

However, Mr Todd advised customers to consider performing an energy price comparison now rather than wait for their current provider to announce a price cut, as he said this could be a "slow and often disappointing process".

Make sure you're not paying too much for your energy - compare gas and electricity prices now at energyhelpline.com or call 0800 074 0745