British Gas has announced that it will cut gas prices by 10% from February 19, 2009. The reduction will apply to all customers on British Gas's standard tariff, benefiting more than 7.5 million homes. The price cut will save customers GBP79 on the average annual household gas bill.

According to British Gas, the company will also introduce a ‘prompt payment discount’ of up to GBP15 per year for customers on standard gas tariffs who pay quarterly on February 19, 2009. For those standard tariff customers paying by direct debit, British Gas will automatically reduce their payments by 10% when the price cuts take effect.

Phil Bentley, managing director of British Gas, said: “We are pleased to be able to announce this price cut for our gas customers. At British Gas we understand energy bills are a significant cost. This price cut will go helping customers manage their budgets, and we will continue to do what we can.”

The gas company said that price cuts come as the company confirmed its intention to invest around £1 billion every year on new sources of gas and electricity to meet the UK’s future energy needs, alongside its proposal to commit £3 billion to the future of the UK’s nuclear industry. British Gas has a commitment of around £1 billion by 2011 to subsidise the installation of energy efficient products in customers’ homes, and a further £160 million to help its most vulnerable customers.

British Gas is a British-owned company. As part of the Centrica Group, it provides gas, electricity and home repair services to customers in Scotland, Wales and England.