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12.02.2016 11:20

British Gas, EDF Energy Cut Natural Gas Prices by 5 Percent

Competitiveness and wholesale price drop wa scited by the two companies

AUTHOR: publics.bg

© Digi_shot, flickr.com

Following E.ON which took to price reduction in January, 2016, two more commercial and domestic electricity retailers in the UK have announced that they are dropping gas prices to their customers. In separate statements issued on February 11, British Gas, owned by Centrica, and EDF Energy said that they would reduce prices by 5.1% and 5% respectively, Natural Gas Europe reported.

In its statement EDF Energy says the reduction is linked to a drop in wholesale prices. It blames higher costs for not reducing the cost of gas supply further.

"Despite improvements to operating efficiency, external costs included in a customer’s electricity and gas bills have increased, some significantly," it said. "This has limited the size of today’s gas reduction and the company’s ability to pass on falls in wholesale electricity costs."

In its statement, Centrica did not mention wholesale prices, instead saying that the reduction was part of a drive to remain competitive in the market. The company also pointed out that this is the third time it has reduced the price to British Gas customers since 2015.