British Gas to cut prices

British Gas today said it was cutting its gas and electricity prices from next month.

The energy supplier, which is part of Centrica, will cut standard tariffs for gas by 17% and electricity by 11%.

As a result, the average annual dual fuel bill for its customers will fall by £167 (€253) to £953 (€1,400).

The price cuts, which come into force from March 12, represent the first such move by a major power supplier in the UK following a series of price hikes.

Energy regulator Ofgem said British Gas had fired the first shot in what it expected to be the start of another battle for customers.

Chief executive Alistair Buchanan said: “Their price cut demonstrates just how valuable customers are in the competitive retail market.

“Over four million customers changed energy supplier last year and companies know they have to offer customers a good deal to compete effectively in the market.

“The heat is now on British Gas’s rivals who will have to consider how to respond to this price cut.

“On one of the coldest days in the year we particularly welcome British Gas’s laudable moves to help low income and other vulnerable customers.

“Today’s announcement means that domestic customers will start to enjoy the benefits of lower prices after a difficult period of high prices.”