British Gas looks at reduced business tariff

23 January 2009

British Gas is a considering a reduction in gas prices for its tariff business customers.

Following the announcement of a 10 per cent cut in domestic gas prices, amounting to an £84 saving on the average annual household gas bill, a spokesperson for British Gas told FM World that the company was reviewing its business tariff.

“We haven’t made a change in our business rate yet, but we are looking at it very closely and an announcement will follow shortly.”

The business tariff applies to around 200,000 SMEs, around 20 per cent of the company’s business customers.

Four-fifths of business customers, including all industrials and corporates, are on fixed price, fixed term contracts and will receive no relief. However, the spokesperson added that these prices track the wholesale curve more closely than domestic prices and that renewal prices have been falling since September.