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More cuts in energy bills expected

Date: 11/2/2009 15:11:32

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Millions more households are in line for lower fuel bills after three further energy firms hinted price cuts are under consideration.

Bosses from E.on, Scottish Power and EDF Energy indicated that announcements on pricing were imminent.

Their comments follow recent decisions by competitors British Gas and Scottish and Southern Energy (SSE) to reduce domestic bills in response to lower wholesale prices,

However, any cuts may prove short-lived after one executive gave warning to the Commons Energy and Climate Change Committee that wholesale supplies were more expensive in the long-term.

SSE chief executive Ian Marchant suggested wholesale prices might be "artificially" low at present and that those for summer 2010 could be 10% higher than 2009.

His company announced last week it was cutting average electricity prices by 9% and gas prices by 4% from March 30. British Gas is to cut gas bills by 10% from February 19.

E.on commercial director Jim McDonald said he was "very optimistic" about reducing prices, given that wholesale costs had come down.

While refusing to go into details, he told MPs: "We would hope to see something soon."

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Nick Horler, chief executive of Scottish Power, said: "We are very well aware that two of our largest competitors have set dates from which decreases will take place and we don't want to lose customers, and therefore we are looking to move soon."

Martin Lawrence, commercial director of EDF Energy, added: "We are also actively looking at prices and expect to move our prices soon."

2012 © Press Association

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