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Gas bills to go down as Bulb announces price cut

The energy supplier warned that electricity-only customers will see a price hike.

Gas ring

More than one million households are likely to see their gas bills drop as supplier Bulb said it would pass on savings in the wholesale energy market to customers.

Bulb said that the average customer who buys its gas and electricity will save £56 a year. This is based on typical energy use calculations.

It comes as the price that Bulb pays for the gas it sells to customers fell, and follows a similar price drop from rival Octopus in January.

However, the company warned that households who do not use gas will see their bills jump from April 1 when the changes come into effect.

Electricity bills will go up for all customers, however for those who also get gas, a £78 drop in gas bills will offset the £22 rise in the electricity charge.

The electricity rises come after the amount Bulb has to pay to use the grid went up.

“The wholesale cost of gas has come down, so we’re passing those savings on to our members.

“Higher network and policy costs have meant we’ve had to put up our electricity prices, but most members will see their bills go down overall,” said chief executive Hayden Wood.

“Our mission is to reduce our members’ bills and cut their carbon emissions, so it’s great we’re able to cut bills for over one million homes.

“By having a single tariff, our members know they’re always on our best deal, whether they joined us four years ago or just signed up this week.”

Octopus Energy became the first supplier to drop prices this year, announcing a 2% reduction in mid-January.

The cuts promised to save customers on the default tariff about £80 on average.

Bulb said that pre-payment customers who use both gas and electricity will also see bills drop, but by only £18 per year for typical use.

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