M&C Energy Group (M&C Energy Group), the UK's largest independent energy consultancy, has welcomed today's announcement by British Gas that gas prices will be cut by 10% from 19th February, but believe that 10% is too little, too late for British consumers.

In December, M&C Energy Group, which purchases in excess of £1billion of energy each year, called for immediate reductions in both gas and electricity as a result of 40% falls in wholesale markets.

Energy analyst for M&C Energy Group, David Hunter said: "Wholesale values of gas and electricity are at the same level as - or even lower than - this time last year, however we are effectively paying substantially more.

"British Gas increased its gas prices by 15% in January 2008 and again in July by a massive 35%. A 10% cut does not come close to reflecting the fall in the market.

"Passing through a reduction, however small, is welcomed, but energy companies have the option to buy energy ahead at vastly cheaper prices then those they are currently charging out to customers. We would urge all suppliers to play fair and pass on these savings, which, in our view should be in excess of the 10% offered by British Gas."

M&C Energy Group believe it is unacceptable that suppliers are delaying passing on price cuts when customers are struggling to pay energy bills. The wholesale market has fallen sharply over the last four months and M&C Energy Group consider it indefensible that all the big six energy companies are not cutting prices.

Sandra Birrell, Director, M&C Energy Group added, "British Gas has succumbed to consumer pressure although they should have gone further and passed on savings to reflect the market drop. The remaining five big energy suppliers should also be made to bring down domestic prices immediately.

"We are disappointed that BG has only reduced gas prices. Electricity wholesale prices peaked in late September (£90/MWh for year-ahead baseload). Now, four months later, prices have dropped by 46% (£48.50/MWh), which is lower than this time last year. Since the major energy companies raised their prices last summer, wholesale electricity has come down by almost half, yet consumers have yet to see the benefits.

"The winter period is crucial for customers' bills, and our concern is that despite steep wholesale price reductions, market falls may not be passed on by the remaining energy companies until after the peak winter consumption."