British Gas has said that more than seven million households will benefit after it cut its standard tariff gas prices by 10%. The move, which comes into force on 19 February, will trim £84 from the average annual gas bill, it added. But observers said that even if rivals followed suit, it was “too little and too late” to make a significant difference to winter fuel bills. The firm’s price cuts will not apply to those on fixed tariffs.

British Gas, which is part of the Centrica group and trades as Scottish Gas in Scotland, raised its gas prices by a record 35% in 2008, while other companies lifted prices by more than 20%. At the end of last year the “big six” energy companies were urged to pass on lower wholesale gas prices. British Gas managing director, Phil Bentley, said the firm understood that energy prices were a “significant” part of their customers’ outgoings. Will British Gas and the like who pushed their customers for three-year fixed deals last summer help those who signed up to higher prices? “We are committed to providing the best possible prices for customers,” he said. “This price cut will go some way to helping customers manage their budgets, and we will continue to do what we can, when we can.”

Watchdog Consumer Focus welcomed the price cut, saying British Gas had “done the right thing”. But chief executive Ed Mayo added: “There are millions of dual fuel and electricity only customers that will not see a penny off their bill. “We will now turn the heat up on the other five companies that are keeping prices sky high.” It’s going to give some customers a bit of respite at a time of year when they are are going to be spending significant amount on heating their homes.

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