This is the third time British Gas has cut prices in the past 12 months – cutting a total of GBP187 off the average annual dual fuel bill.

Last year, the company cut both standard gas and electricity prices by an average 10%. The company claims that the price cut means that it is now also the cheapest major supplier of standard gas at average consumption – and therefore of dual fuel – right across Britain.

Phil Bentley, managing director of British Gas, said: “At British Gas, we know household budgets are stretched, and that our customers are concerned about the effect the recent cold weather will have on their winter fuel bills.

He added, “This latest price cut means that, no matter where you live in Britain, British Gas is offering on average the cheapest standard gas, electricity and dual fuel prices – beating all other major suppliers.

“But, at British Gas, we know that cutting prices is just part of the picture in helping our customers cut their fuel bills; we’re also doing more than any other supplier to help our customers use less energy. As well as cutting prices three times in the past year, we have been helping our customers improve their energy efficiency and cut their energy use by 7%.”

British Gas has also removed the price ‘differential’ for gas pre-payment meter accounts. This means British Gas’ pre-pay gas customers are now paying, on average, the same for their energy as customers who pay by cash or cheque.