Ofgem predicts 20% drop in gas prices

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<div class="rxbodyfield" xmlns:o="urn:www.microsoft.com/office" xmlns:st1="urn:www.microsoft.com/smarttags" xmlns:st2="urn:www.microsoft.com/smarttags2" xmlns:w="urn:www.microsoft.com/word" xmlns:x="urn:www.microsoft.com/excel"><p>British Gas&#39; recent decision to lower its energy prices will spark a price-war within the gas sector, leading to an overall cost reduction by 20% in the coming year, according to predictions from energy regulator Ofgem.</p><p>A spokesman said on Sunday: &quot;We expect to see further falls in energy prices. This is good news. It shows the market is working.&quot;</p><p>Whether or not consumers&#39; bills fall by as much as 20% remains to be seen, but British Gas&#39; price cuts certainly stirred the market, with Scottish &amp; Southern Energy claiming that its revised charges would &quot;blow British Gas out of the water&quot; and npower championing its tracker tariff.</p><p>Falling energy prices are also good news for consumers with debts and credit agreements, as experts are predicting that the lower costs will counter the inflation fears - and therefore keep interest rates where they are - since input costs from British businesses witnessed a 2% drop from December 2006, according to a report in the Guardian.</p><p>Is your energy supplier giving you the best price and service? uSwitch.com not only compares the cost of energy plans but also gives you the supplier&#39;s customer satisfaction score. See how well your gas &amp; electricity suppliers perform, with the <a href="http://www.uswitch.com/Energy/Index.aspx?">uSwitch.com energy calculator - you may be surprised at the results!</p><p><a href="http://www.adfero.co.uk" target="_blank"><img alt="track" src="http://feeds.directnews.co.uk/feedtrack/dn.gif?feedid=362&amp;itemid=18059557" style="border:0 0 0" />&#169; Adfero Ltd</a></a></p></div>