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British Gas has announced a 5 per cent cut to household gas prices.
The cut takes effect from 27 August and will impact 6.9 million customers on British Gas’ standard and Fix and Fall tariffs. The move is the supplier’s second price reduction in six months and will see an average of £35 taken off consumer bills.
British Gas managing director Mark Hodges said: “British Gas is committed to offering competitively priced products, and the price cut we’re announcing today demonstrates that.”
He added: “There are a range of costs that make up energy bills, some decreasing and others increasing.
“This reduction reflects our lower projected total costs for 2015 and 2016 and we’re pleased that customers will see the benefits in their gas bills ahead of next winter.”
British Gas said its electricity prices will remain unchanged “despite the fact that several elements which make up the bill are rising steadily”.
The move comes as suppliers face increasing political pressure to cut their bills. Energy secretary Amber Rudd told the big six energy suppliers at the start of June to cut their energy prices now the threat of a Labour price freeze has been lifted.
Last week, the Competition and Markets Authority (CMA) also accused suppliers of taking advantage of their disengaged customers and proposed partial price regulation as a means to protect sticky customers.
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