Fuel bill freeze and cuts to follow new policy

Major energy companies that will benefit from the Fuel bill freeze announced their plans to pass on savings to customers.

10:08 03 December 2013

After George Osbourne has announced government plans to roll back green levies, major energy firms have started to announce their plans of passing the savings to customers.

Centrica, the owner of British Gas, which recently imposed a £123 price rise for the average dual-fuel customer, has said that it will cut bills by £53 in January. SSE confirmed the same plan of actions while Npower plans a conditional price freeze until 2015.

Meanwhile, EDF, which announced a 3.9% increase in November, has indicated that it would not raise prices again before 2015. The company’s price increase is lower than many of its rivals in anticipation of a move by the government.

Some subsidies for those in fuel poverty will be moved into general taxation and some green policy targets will be slowed down.

However, overall prices are still rising this winter for most energy customers as the planned price increase that were announced by energy companies outweighs cuts that result from government plans.