The cut follows EDF Energy’s announcement yesterday to lower gas prices by 5 per cent from next month.
A spokesperson for British Gas said that it could not lower gas prices for now because it had a much bigger customer base (10 million gas customers as opposed to EDF’s 1.4 million) and the way it bought gas to supply them reduced its immediate flexibility. The spokesperson added that it did have more flexibility with electricity prices.
EDF, on the other hand, he pointed out generates more electricity than British Gas.
British Gas said 5.3 million single rate electricity customers on a variable tariff would each save an average £24 on their annual electricity bill.