British Gas lead prices down - will others follow?

After a period of relative calm on the energy price front British Gas has revised its Websaver product resulting in it being the price leader in almost half the countries distribution areas. Good news for customers at this stage of the winter, as those moving now will get the reduction during the coldest time of the year.

However is this a cynical move on the day Ofgem tasked the energy companies with reducing prices to reflect the lower prices they have been paying for wholesale fuel recently? Well the tariff does have pretty high cancellation fees at £30 a fuel if you want to cancel - although these only apply until June, whilst the discounts last until February 2011. And whilst it is cheaper in some areas it in not that competitive in others. But overall we feel its a step in the right direction, and further evidence that the lumbering giant of the energy world has woken up to the fact that it does need to be competitive on price as well as relying on its brand!

Will others move down too? Ofgem demanded action in the New Year, and it would not surprise us if others dug their heels in until February, well knowing that by then the biggest energy spend of the year has been done, and any reductions will have far less impact on our pockets - and their income!

We suggest looking now at the savings on offer and move now if you want to maximise your winter savings. Check now on our energy calculator pages