London, U.K. — (METERING.COM) — June 18, 2007 – The six main energy suppliers in the U.K. have announced rates cuts for existing customers and have launched new cheaper tariffs for new customers, according to TheEnergyShop.com, an energy price comparison and switching service.
TheEnergyShop.com’s analysis suggests that retail gas prices will fall by 25% from their 1 January 2007 peak, with electricity prices falling by 20%. This will happen in two phases, one currently taking place and the other in late 2007 or early 2008. But it has also found that while tariffs have been reduced, they have not fallen as much as the wholesale price of gas and electricity, so customers are not getting the full benefit.
The last two utilities to announce lower tariffs were ScottishPower and EDF Energy, although the latter only cut gas tariffs, leaving those for electricity unchanged. On 30 April 2007 ScottishPower announced that it would be cutting gas prices by up to 16.5% and electricity prices by up to 5.5% with effect from 15 June 2007, but according to TheEnergyShop.com the actual cuts are nowhere near as big as the headline. Gas prices have actually only been cut by 8% on average, with electricity bills cut by 1.3%, although discounts for prompt pay have been improved. EDF has cut gas prices by 10% from 15 June – the company announced it would not reduce electric tariffs because it was already the cheapest supplier of this commodity.
TheEnergyShop.com’s advice to energy customers is to switch now. Because all the suppliers have announced price cuts, customers are able to get a proper comparison on a like-for-like basis.