AM hits out at unreasonable delay in cutting the price of gas

6.57.43pm GMT Thu 21st Dec 2006

Peter Black talking to Briton Ferry Pensioners

The Welsh Liberal Democrat Assembly Member for South Wales West, Peter Black, has hit out at the recent announcement from British Gas owners, Centrica, that they are to cut the retail price of gas in Spring 2007 as too little too late.

Mr. Black has questioned why it has taken the gas provider so long to make the cut when wholesale gas prices fell by 20% during 2006. He has demanded that they reduce their prices earlier so as to help the elderly and the fuel poor cope with winter, and that other providers should follow suit.

"Everybody will welcome this sign that at least one gas company is lowering its prices," said Mr. Black. "However, it remains the case that the price of wholesale gas fell by 20% this year. Unless Centrica are prepared to make cuts of this magnitude in the price they charge the hard-pressed consumer, particularly pensioners and those on fixed incomes, and unless their competitors follow suit, then it will be difficult for the industry as a whole to shake off the accusation that it cares far more for the well-being of its shareholders than of its customers."

"At one point last month the wholesale gas price dropped as low as -5p a therm. Whilst noone is expecting that the retail companies will be giving gas away, it does mean that there is room for some real competition between them. Customers should keep a wary eye on their energy bills, and be prepared to switch away from those companies who refuse to take action to cut bills."

"At best, Centrica's action is cause for limited celebration only; and for some Centrica staff no celebration at all, as the price cuts are being announced at the same time as a cull of 1000 jobs. The actions of the energy companies in driving up prices for consumers, whilst buying it more cheaply themselves, will hit pensioners and the fuel poor badly this winter."