More than a million British Gas customers will see their rates reduced as the supplier as of last Saturday (April 1).
Impacted customers are set to save £59 each on gas costs over the next year. The Chancellor Jeremy Hunt announced in his Spring Budget that prepayment customers would see their gas prices lowered from July.
This was announced to get rid of the "prepayment penalty", meaning these customers would pay the same as those on direct debit.
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But British Gas has brought the price cut forward, which it says will represent a total saving of "well over £10 million" for its prepayment customers between now and July, according to Money Saving Expert.
Customers do not need to do anything to receive the new rates as these should be applied automatically.
Chris O’Shea, the boss of British Gas owner Centrica, said: “We know that more help is needed for prepayment customers and we support the Government’s decision to lower prepayment prices to the same level as direct debit customers. We wanted to do more to support this group of customers by introducing this change as soon as we could so British Gas prepayment customers will benefit immediately.”
MSE said it asked other major energy firms if they also plan to cut prices before July. Utility Warehouse told the consumer advice website it would be keeping rates as they are for now, while E.on, EDF, Octopus, Ovo (which also owns Boost and SSE), Scottish Power and Utilita are all yet to confirm their approach.
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