British Gas joins rivals in cutting gas prices

British Gas said it will cut gas prices for customers by 5.1%, the latest company to announce cuts for the start of the year.

The market leading energy utility firm's holding company Centrica announced the move on Thursday, saying that the average annual gas bill from British Gas will be almost £100 lower than 13 months ago.

The cut takes effect on 16 March on all tariffs and is expected to bring 6.8m customers an average saving of £31.

It is the third cut the company has made since the start of 2015 with an overall reduction of 14%.

Centrica's energy supply chief Mark Hodges said British Gas was the only major supplier to cut prices twice last year to ensure customers’ bills were lower through the winter.

“Taken together, our three price reductions will bring the average household’s annual energy bill down by almost £100.

“British Gas will be cheaper than 95% of the market, for a typical household on a standard dual fuel tariff.”

Hodges said competitive pricing is the way to retain existing customers and win new business in the hard-fought market.

The move follows similar announcements by major market rivals.

Npower announced earlier this week it would cut prices by 5.2% from the end of March, while E.On cut its gas prices by 5.1% on 1 February.

Scottish Power will cut its gas tariff by 5.4% on 15 March, and SSE will cut its prices by 5.3% from 29 March.