Last week British gas cut their electricity prices by 10% with immediate affect. That follows their similar 10 per cent cut in gas prices in February.

Good news you’d think. But we don’t think so.

They should have cut their prices by much more considering that wholesale prices for gas and electricity are about half the cost they were at the peak last year. This proves that British Gas are making a windfall profit as wholesale costs fall.

It is a fact that wholesale gas prices are 47% off their mid summer peak last year and electricity prices are 28% down too. Therefore, despite the cuts we,ve just received, we are still paying more for our heat and light than we were nine months ago.

Would consumers on the continental europe tolerate this? You can bet their bottom Euro they wouldn’t. They have seen much bigger falls in the price of their gas and electricity.

We think that the industry’s regulator, Ofgem, must show some teeth. Bite British Gas where it hurts. Instruct them to cut prices another 15% and NOW!