Gas and electricity prices could fall by 10 per cent

Millions of UK families are set to see a reduction in their household energy bills following a drop in wholesale gas prices .
The mild winter has reportedly left suppliers over-stocked with gas, causing wholesale costs to fall by as much as 25 per cent.
Two of the nation’s smaller suppliers – The Co-operative and OVO – have already brought their tariff prices down, putting pressure on Britain’s big six energy firms to follow suit or risk losing business to these smaller competitors.
Last week Ovo Energy announced an immediate 5 per cent cut in its dual-fuel fixed-tariff prices for new and existing customers, while Co-operative energy has already announced a three per cent fall in prices to take effect from February.
Similar moves by the likes of British Gas could spark a price war between the major players, resulting in lower bills for all UK consumers.
Consumer watchdog groups and industry experts say British Gas, the UK’s largest energy supplier, has a duty to pass on the savings after hiking up prices in the summer following an increase in wholesale costs.
They believe the company could afford to cut retail prices by up to 10 per cent, which would save households signed up to its dual-fuel electricity and gas tariff £128 a year.
Despite refusing to comment on market speculation, executives at British Gas are thought to be considering announcing a price cut before the annual results of parent company Centrica are revealed on February 23.
Adam Scorer, director of external affairs at Consumer Focus, said: “We’ve already seen two smaller suppliers cut their prices and consumers will be anxious to know when the major suppliers will do the same.”
“When wholesale prices were on the rise, energy firms were clear on the need for this to be passed through to consumers and this must also be demonstrated as prices fall.”