British Gas cuts prepayment energy price premium

LONDON, Nov 25 (Reuters) - British Gas will reduce the premium that customers on prepayment meters are charged for their power and gas compared to other payment methods from Dec. 18 and may cut all bills next spring, the subsidiary of Centrica (CNA.L) said on Tuesday.

Householders who pay for their electricity and gas using prepayment meters are charged more by energy suppliers because of the higher costs associated with running them.

But Centrica said on Tuesday that thanks to cost savings in running pay-as-you-go meters, the average customer getting both power and gas from British Gas will now pay about 22 pounds ($33.26) less per year.

The company also pointed to possible across-the-board price cuts early next year.

"While wholesale gas prices are still high, they are falling," Phil Bentley, managing director of British Gas, said.

"If that continues, we are hopeful we'll be able to reduce prices for all our customers next Spring."

Some energy suppliers charge prepaying customers hundreds of pounds more than those paying by direct debit, because of higher administration costs and utilities have warned that moves to cut profits from prepay meters could mean other bills rising. (Reporting by Daniel Fineren)