News of the bumper profits enjoyed by British Gas – they doubled in the first six months of 2015 – has sparked renewed calls for customers to depart the energy giant for cheaper rivals.
In July it announced it was cutting gas prices by 5% from 27 August, benefiting 6.9 million customers on Standard and Fix & Fall tariffs.
However, the move – worth £35 a year – was dismissed by critics because it was coming from a company that was charging some of the highest prices in the market.
Price comparison sites have greeted the news of its huge profits with calls to switch providers, promising savings of as much as £300 a year.
Mark Todd, director of website energyhelpline, described the level of British Gas profits as “shocking”. He says: “While wholesale energy prices have been tumbling over the last two years, British Gas at first moved prices up sharply in the autumn of 2013, and only later started to pass on savings at a slow pace.
“The profit increase shows that passing on small, slow, price cuts have been great for business, if not for consumers. If you don’t switch, only your energy supplier will get rich,” he warned.
A search this week using the Guardian’s energy comparison website found that the average British Gas customer can save around £300.
The cheapest tariff is offered by First Utility. It is followed in the tables by several small firms most readers will not have heard of – apart from Scottish Power, which has been beset by billing problems which may discourage many from switching. First Utility has also been the subject of many complaints to the Guardian’s consumer champions.
Given these reservations, we would rather go for Sainsbury’s Energy or Ovo. At around £900 a year for both gas and electricity, Sainsbury’s offers a £300 saving over British Gas, which charges the typical dual-fuel customer £1,200 a year.
What is ironic is that the Sainsbury’s deal is offered in partnership with – you guessed it – British Gas.
For a slightly higher £916 a year, Ovo comes with excellent customer service reviews – and has the advantage that it is an entirely independent firm.
