British Gas price cuts: Your reaction

Prices charged by all the major suppliers rose sharply last year

British Gas has said it will reduce its standard tariff gas prices by 10% from 19 February, which it says will benefit more than seven million households.

BBC News website readers have been sending in their reaction to the price cuts, with some feeling they won't benefit from the gesture. Others say that the price cut is insufficient and has taken too long to arrive.

British Gas has given a response to some of the concerns.

The 10% price cut doesn't benefit me. I am a pensioner and I opted for a fixed deal until 2011 to save money. Now in order to get out, I need to pay �30 for electricity and �70 for gas. I've been a British Gas customer for 40 years. What a way to treat a long-term and loyal customer! I will pay the �100 to get out of the deal but I will leave British Gas, that's for sure!
Edward Dixon, Ipswich, Suffolk

At the peak of their price increases the utility companies were actively promoting fixed deals for set periods and I was one of those who took this offer after watching my gas bills spiral upwards. Now as the prices begin to go down, I can only watch and wait for my deal to expire at the end of 2010. If these companies want to do things that will benefit all, they should apply the same discount across their entire domestic price range.
Jim Meechan, Glasgow

So British Gas have cut their prices by 10%? No they haven't! Everyone on a fixed price tariff will still be paying the higher energy costs that ruled last summer and will continue to do so for the whole period of the deal. British Gas will be creaming off excess profit from a large proportion of their customers. Sounds like it's time to change energy supplier.
Dave, Southampton, England

Will British Gas and the like who pushed their customers for three-year fixed deals last summer help those who signed up to higher prices?
Steve, Folkestone Kent

I feel very angry about British Gas, they offered a fixed price plan until 2011 saying that prices are likely to rise. We opted into this plan and since then the prices have remained the same and now we hear they are going down. I feel they used scaremongering last year to take advantage of the people's financial uncertainties.
Duncan Burke, Bristol

This does not benefit those on pre-payment meters who are currently charged higher amounts then those on monthly or quarterly bills. I feel this is still not good enough and more should be done to help those on lower incomes. This does not benefit me in the slightest!
C Holmes, Staffordshire

I am on a pre-payment meter, which is the most expensive way to buy gas. I wonder whether this will affect me.
John, Beverley, Yorkshire

They are having a laugh - 10% reduction for some of their customers! They have ripped us off over this last 12 months and they think that they are doing us a favour. Put a massive tax on their profits!
Brendan Ferguson, Euxton

A raise of 35% and now a drop of 10%. So really a sustained raise of 25%. Whatever.
Johnny, London

This is nothing but publicity, 10% is nothing when you consider the 40% rise in prices we've had to endure in the last twelve months.
Andy, Downham Market

How is it that British gas can increase prices in July 2008 with immediate effect but take one month to apply reductions. And surely until they reduce prices by 15% they are not even in line with competitors.
John Page, Headley Down

There were huge increases last year that were linked to oil price. Now oil price falls from $150 a barrel to $50 a barrel. Price rose 35% for gas last year and we get a 10% decrease now. Can anyone else see what is wrong with this sentence. I love the one about buying gas last summer and now that now stock reserve has ran out they can reduce the price. When prices rose last summer you will be surprised to know that British Gas prices went up straight away - were there no gas reserves when the price needs to go up? Until the government steps in and smashes the monopolies that run energy companies the consumer will always be lining the pockets of big business.
Martin Dempsey, Scotland

British Gas are bringing down prices just in time for spring. Well fancy that. You don't need to be a rocket scientist to know that they'd obviously keep their extortionate prices running all through winter when gas usage was high, and then bring them down when warmer weather arrives. British Gas think they are doing everyone a favour when they announce this move when its plain to everyone that they've been making huge profits. Now they are making a gesture by way of a minor price drop to make everyone think that they are a caring company. I have news for them. The public aren't stupid.
Paul Sparks, Haywards Heath, England

If they really wanted to help people with their fuel bills then they should have done this at the start of the winter. Of course, 10% price reduction is great and I'll take whatever I can get but it would have been nice if they did it earlier. So far, despite the drop in our mortgage, we've been able to spend nothing extra because we're aware that we have massively inflated fuel bills. Only when they're out of the way can we start to put our savings back into the economy.
Martin, Minehead, UK

About time there was a bit of good news following price rises. My British Gas bills through direct debit were bumped up by over �75 a month from October. I just noticed that for the last three months I've been charged �70 worth of gas more than I've used, leaving me with over �200 in credit. I was told that I can't get that money back until they reviewed my account in a few months time or I cancelled my direct debit and switched to a more expensive payment plan.

So this is good news but I'm sure there are many people like me who'd want such large credit balances repaid when prices drop rather than have their money used by British Gas.
Steve Taylor, Stockport

BRITISH GAS SAYS:

* Overall we would point to the fact that although prices have come down recently, there can be no certainty that they will stay this way. Prices can go up and down and the fixed and capped price tariffs ensure that prices will not increase above the rated detailed in customers contracts.

* Customers on British Gas long term contracts tend to save money over the period of their contract. For example, customers on Price Protection 2010 will now be paying, on average, 36% or �418 less even after today's decrease.

* Customers who sign up to fixed price deals, much like a fixed rate mortgage, chose these tariffs to give themselves peace of mind in what is a volatile wholesale market.

* Over half of our customers on fixed priced tariffs will be paying less than the standard tariff customers even after the price decrease.

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