British Gas is to reduce household gas prices by 5%, cutting annual energy bills on average by £37. This move follows news lat week, that fellow member of the Big 6 E.ON knocked 3.5% off its gas prices.

•  The 5% reduction in standard tariffs will benefit 6.8 million customers, including all customers on British Gas Fix & Fall tariffs, from 27 February.
• The price cut reflects the recent fall in wholesale gas prices. Though most of the gas being used in customers’ homes today was bought at higher 2013/14 prices, the wholesale costs for 2015 are now reducing to a level where we can pass this reduction to customers.
• Given the continuing volatility of wholesale prices, British Gas will be keeping our prices under review for further movements up or down.

Commenting on the announcement, Iain Conn, Chief Executive of Centrica plc, said: “We’ve been watching the significant moves in the international energy market extremely closely for some time, with the aim of helping customers with a price cut at the earliest possible opportunity. Operating in such a volatile market, no pricing decision is straightforward.

“We bear the responsibility of managing the risks of buying energy ahead on behalf of our customers, who value the predictability this brings. Taking this decision now, at a time of continuing uncertainty, shows our absolute commitment to pricing competitively, with customers at the forefront of our minds.”

Ian Peters, Interim Managing Director of British Gas, said: “This price cut, worth £37 off the average annual bill, will help our customers keep their energy costs down at a time when many household budgets are still under pressure. We’re pleased that existing customers on our Fix & Fall tariffs will also see the benefit of this price reduction.

“We know customers expect competitive pricing and good value from British Gas and we continue to keep our prices under constant review. We have a range of competitively priced products, fixed and variable, to suit customers’ needs and preferences.

“We’ll also continue to lead in the development of innovative products and technologies to put customers in control of their energy usage and help them keep their energy bills as low as possible.”

Responding to British Gas’s announcement to cut household gas prices by 5%, Secretary of State for Energy and Climate Change Ed Davey said:

“This will be welcome news for British Gas customers – and after E.on’s price cut last week, customers of other energy companies will be asking when they’re going to see savings passed through.

“But while these bill cuts are welcome, the biggest savings can be made by switching to a better tariff, with many saving around £300 – or even more. We’ve made switching quicker and easier than ever before as part of our work to drive down energy bills, reform the energy markets and give people more control.”

Find out more at www.britishgas.co.uk or call us on 0800 048 0202.