Powergen has become the third big energy supplier to announce price cuts for its gas and electricity customers since the beginning of February. From 30 April, its gas bills will fall by 16% and its electricity bills by 5%. Powergen’s announcement will benefit six million domestic customers, with those on “dual fuel” contracts saving on average £92 a year. British Gas and Npower have already announced lower tariffs in response to falling wholesale gas prices. Wholesale gas prices have fallen by about 50% over the past six months. Powergen’s managing director Nick Horler said: “We’ve been very aware of the concerns of our customers over rising energy costs in recent years and now the wholesale market appears more stable, we’re pleased to be able to reduce our prices.” Adam Scorer of the watchdog Energywatch gave this latest price cut only a lukewarm welcome. “Three of the Big Six have now announced price reductions and the others must follow,” he said. “As prices come down we are concerned that consumers looking to switch for a better deal may be in for a confusing time with new products and complex terms and conditions emerging as companies jockey for position.” Scottish & Southern Energy, with about seven million customers, has also said it will cut its tariffs soon to keep its prices lower than those of British Gas. But so far it has not yet said by how much, or when the price cuts will come into effect. British Gas, which still has half the UK’s domestic customers, will cut its tariffs next month. Its gas prices will fall by 17% and electricity prices by 11%, cutting its average dual fuel bill by £167 to £953. But Mark Todd of Energyhelpline.com predicted that the company may cut its prices further. “This is likely to prompt swift retaliation from British Gas who are keen to remain the cheapest UK energy supplier in order to regain the one million customers lost last year,” he said.

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