moneysupermarket.com: British Gas cuts prices by 10%

Commenting on British Gas cutting gas prices by 10 per cent, Scott Byrom, utilities manager at moneysupermarket.com said: "British Gas has thrown down the gauntlet to the rest of the ‘Big Six' with a 10 per cent gas price cut sweetener for it's 7.5 million standard customers, effective 19 February. Households with an average consumption can expect to see a £88 drop in their annual bill with standard prices falling to £1240*. This reduction still leaves British Gas' online tariff, WebSaver1, as the cheapest product available at £1059. If Websaver1's gas price fell by at least 10 per cent, we would see energy bills break below the £1000 barrier - the new average price for a dual fuel medium user would be £987.

"As far as bill payers are concerned, a 10 per cent drop does little to compensate for the record price increases of 2008 (47 per cent for gas and 28 per cent for electricity), and many consumers will hope that there will be further price cuts on the horizon.

"Although a decrease is certainly a step in the right direction, British households have already paid through the nose for their winter energy consumption. Nevertheless this is a much needed cut that will help pressurised purse strings. The energy market can now expect a flurry of activity with other providers moving imminently in response - probably cutting prices between 10 -15 per cent.

"My advice to bill payers is to sit tight and see how the other energy giants react. During the re-shuffle of the energy market consumers should arm themselves with information on their current provider, current tariff and also their consumption to make the right choice when looking for the best deal when all of the Big Six have shown their hands. There are definitely savings to be had and consumers should be proactive in looking to reduce the cost of their bills."