News Tristan on 22 Jan 2009 01:40 pm
Gas Prices To Be Cut 10% By British Gas
I read in The Times today that British Gas are planning a 10% price cut which will save the average household £84 per year. The cut is to be introduced on the 19th February and British Gas are to be the first major gas supplier to reduce prices following pressure from the regulator, in response to falling gas prices on the wholesale markets.
What I find interesting about this is that according to British Gas, the average gas bill in this country is £840 - by definition if £84 is 10% of the average. I’m sure that I don’t spend anywhere near that each year on gas, most likely £600 a year at the most, and I live in an above average size house.
So how can the figures be so skewed? My only explanation is that there must be a lot of people who use a lot more gas than I do - the elderly perhaps who have their heating on all day, every day, even in the summer.
on 22 Jan 2009 at 8:43 pm 1.Rob Lewis said …
Yep, in this case it pays them to use a skewed average because the saving will sound better in their press release!
Typically, we decided to fix our gas prices a few months ago, before prices started to drop, so we probably won’t benefit from any cut, unless other suppliers follow suit and we can threaten to move.
on 22 Jan 2009 at 8:55 pm 2.Tristan said …
I suspect you may be onto something there about a skewed average making the savings sound better.
It’s not quite the same saying:
“this 10% price reduction will save the average household £30 a year”
Big deal, who’s going to really care about such small savings, it’s not even £3 a month…
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