British Gas launches 7% price cut

British Gas is joining the round of recent price cuts by reducing gas prices by 7%.

According to British Gas, the price reduction will benefit eight million households, bringing down the average customer bill by £55 a year - however, there is no price reduction for electricity.

This is the second time British Gas has reduced gas prices over the last 12 months, responding to changes in the wholesale price of gas.

Energy suppliers have been widely criticised for not reducing power and gas bills in light of falling wholesale prices. Wholesale prices came down substantially starting February 2009, but domestic prices only fell by about 5% last spring.

British Gas also launched a new online tariff today. For average users, Websaver v6 currently is the cheapest tariff available in the UK at £899 a year. For high users, however, other tariffs tend to be cheaper.

See below for a rough overview of who currently offers the cheapest electricity and gas among UK suppliers:

Please note that these are only averages. In order to find out exactly how much you could save, click here.

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