Hopes for a price war between energy suppliers have been raised following the announcement of a seven per cent drop in prices by British Gas.
All customers, including those who switch gas provider to British Gas, will benefit from the immediate cut in prices. However, there are hopes that other energy suppliers will follow suit and provide consumers with cheap energy.
Director of energyhelpline.com Mark Todd pointed out that a period of double-digit price cuts could be about to begin.
"In the short term, 2010 should be a year of energy price cuts. Wholesale prices are low and household prices can come down a lot more," he said.
Mr Todd also noted that a new internet tariff from British Gas released today, Websaver v6, offers cheap energy to an average gas and electricity user when compared to other tariffs.
Customers with pre-payment meters will also benefit from the latest British Gas price cuts. The company claims its prices have now been reduced to such an extent that they are in line with those who pay by cash or cheque.
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