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BIG six profiteer British Gas tossed crumbs to residential customers yesterday, unveiling a 5 per cent price cut in a desperate bid to silence calls to restrain the energy sector.
The decision follows a similar move by competitor Eon — but will only come into force after the cold winter months.
Centrica-owned BG Group said it would save 6.8 million customers £37 annually and reflected lower wholesale gas prices.
Yet the belated cut is dwarfed by decades of superprofits, which helped its parent firm bank a cool pre-tax £2.65 billion last year alone.
British Gas operations accounted for £1.03bn of that figure.
Eon’s announcement of an immediate 3.6 per cent drop came amid a rearguard action by the Tories and their City allies against Labour’s bid to put energy bills at the heart of the election campaign.
Hands-off Prime Minister David Cameron swiftly claimed credit for the announcement, boasting on Twitter that the news was “welcome” and that the Conservatives would continue to “encourage” firms to reduce prices.
But Campaign for Public Ownership spokesman Neil Clark said it was a “cynical move” by the energy firms.
“In the current political context it’s no surprise that they’re giving a very, very small amount back from what
they’ve made in the last five years when they’ve made enormous profits,” he said.
“Quite clearly the companies are worried about the public mood — we’ve never had so many in favour of renationalisation.”
Support for an end to the reign of profiteering utilities was now at 70 per cent, he said, adding that the 5 per cent cut was “still a drop in the ocean — it doesn’t weaken the case for public ownership in any way whatsoever.”
Labour shadow energy secretary Caroline Flint said: “Given that gas prices have fallen by at least 20 per cent, a price cut of just 5 per cent means consumers still aren’t getting the full benefit of falling wholesale prices.”
The opposition has vowed to freeze prices and bring in new regulatory powers to force firms to lower charges, but does not back renationalisation.
