British Gas Slashes Gas Bills By 7%

• News
• Published: 04 Feb 2010 in Household and Gas Electricity

British Gas has cut the price of its gas for the third time in 12 months.

Some eight million households will benefit from the 7% cut in average gas bills announced by the company.

The move, which will see customers save an average of £55 on their gas bill, comes amid falls in wholesale prices from their highs of two years ago.

It is the third cut in energy prices from British Gas in the past 12 months.

The reduction comes after recent spells of freezing winter weather increased fears of a huge increase in energy bills.

The cut is an average across all regions and all paying methods, although those using pre-payment meters will have a slightly larger reduction as the firm removes the price difference between pay methods.

British Gas said the bill reduction means it is now on average the cheapest supplier of standard rate gas and electricity.

It is the first of the big suppliers to make an energy price cut this year, and the move could spark cuts among its rivals.