Currently, only First Utility, an independent electricity and gas supplier based in Warwick, UK, provides a cheaper average rate at GBP965 a year.
The new plan was revealed a day after E.ON’s cut in its online tariff and is likely to be followed by further price cuts from other major player in the energy market.
Scott Byrom, utilities manager at moneysupermarket.com said: “We may see British Gas make a bold move to claim the top spot in the energy market. It really is a case of watch this space as this is potentially the tip of the iceberg, with more attempts to claim the crown of the ‘UK’s cheapest energy provider’ to come.”
