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Smaller power firms rival Big Six with significant cuts in gas price war

Smaller energy firms have squared up to the Big Six amid an ongoing gas price war - with Ovo announcing a hefty 10.4 per cent price cut.

It comes after EDF came under fire for announcing a cut in tariffs of just 1.3 per cent - significantly below the wholesale price drop of 19 per cent.

It comes after British Gas announced a five per cent cut in prices, E.ON reduced tariffs by 3.5 per cent, Scottish Power announced a 4.8 per cent drop in prices, npower revealed a 5.1 per cent cut and SSE announced a 4.1 reduction.

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  1. Chris Choi

British Gas customers 'may not be jumping for joy'

British Gas will have to live with the fact that many of their customers won't be jumping for joy over this news.

British Gas has announced a price fall today. Credit: PA Wire

The wholesale market has been dropping for months, with wholesale costs for the next 12-month contracts down 28%.

In that context, this 5% drop can look a little bit mealy-mouthed.

The remaining big six companies that have not dropped prices yet have not given any firm signals that they will reduce prices.

If you look at when British Gas raised its prices by 35% in 2008, the new tariff came into force with immediate effect.

Today's reduction won't come in until the end of next month - some people will see that as an unfair contradiction.

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Smaller power firms rival Big Six with significant cuts in gas price war

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