Following an announcement yesterday detailing that EDF Energy will cut its gas bills by 5%, after a decline in wholesale prices; a new energy price war has broken out between some of the major energy suppliers.
British Gas has cut its electricity prices by 5%, saving the average customer £24 a year, while SSE has said it will cut gas prices by 4.5% in March. It is believed that other suppliers will soon follow suit.
These cuts seem insignificant however compared to the average 18% increase in gas prices that these big companies put in place last year.
Danny Jatania, CEO of financial services company Pockit said, “Whether the energy companies increase or decrease their prices, there will always be a large contingent of people who are paying over the odds for their gas and electricity and savings can be made by shopping around.”
Most customers don’t even claim compensation for overpaid bills and as a result around £4 million remains unclaimed. Other money saving benefits offered by energy firms include cashback rewards and smart meters that will provide more accurate bills.