Gas and electricity Updated:
British Gas has followed the lead of EDF Energy by announcing price cuts to its electricity tariffs.
The average cut of 5% in its standard electricity prices will take effect immediately, with around five million customers set to benefit.
British Gas said that customers would save around £24 on their annual electricity bill on average. In a full year, it is thought that electricity customers will save more than £100 million.
Wholesale energy prices have been falling since they reached a peak late last year, with British Gas saying that it aims to make its prices as competitive as possible and to share the benefit of cost savings with its customers.
"This reduction in electricity prices builds on the commitment made by British Gas not to raise prices for all its variable rate gas and electricity customers throughout the winter," it added.
Ian Peters, managing director, of energy at British Gas, said the cut ensured that the firm is once again offering the cheapest standard electricity, on average, of any major supplier.
"We want to keep prices as low as possible for our customers. Household budgets are stretched, and we are doing everything we can to help our customers keep their bills down."
It follows yesterday's announcement by EDF Energy, although the firm cut its gas prices by 5%, rather than electricity.
With two of the UK 's 'Big Six' energy firms having cut prices, it is likely that the remaining four will follow soon.
In previous weeks, smaller energy suppliers Ovo Energy and The Co-operative have both announced price cuts for residential customers.
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