The announcement, which follows its 10 per cent cut in gas prices which took affect in February, will come into effect immediately for the 4.5million energy customers with British Gas.

And, as a result, British Gas has become, on average, the cheapest electricity supplier in Britain. According to British Gas, its electricity rates are now as much as £111 lower than the local supplier.

Commenting, managing director at British Gas, Phil Bentley said: “British Gas is offering existing and new customers the cheapest electricity rates in the market place.

“We want to do what we can, when we can, for our customers. When we are able to cut an average 10 per cent from our standard electricity prices and continue to help our customers during this economic downturn.”

Whether other gas and electricity providers will follow suit as they did with their price increases of last year remains to be seen.

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