Today’s announcements come in response to calls from energy secretary Amber Rudd, Ofgem chief executive Dermot Nolan and consumer groups for suppliers to reflect falling wholesale prices. They follow cuts by Eon (5.1 per cent), SSE (5.3 per cent), Scottish Power (5.4 per cent) and Npower (5.2 per cent).
Both companies said the cuts would save their customers an annual £31.
Mark Hodges, British Gas’ chief executive, energy supply and services, UK & Ireland, said: “British Gas was the only major supplier to cut prices twice last year, ensuring customers’ bills were lower through the winter. Today we’re announcing a further reduction to ensure our prices remain market-leading.
“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. Competitive pricing is the way to retain existing customers and win new business in this hard-fought market.”
Beatrice Bigois, managing director of customers at EDF Energy said: “We are pleased that we can reduce customers’ gas bills for the second time in just over a year.
“Our prices are under constant review and today’s announcement reflects falls in wholesale gas costs. There are other costs impacting customers’ energy bills that are beyond our control – these increased steadily during 2015.”
Read Utility Week’s analysis, ‘Price cuts: the industry reaction’ here