British Gas to cut household prices by 5 pct

British Gas, the biggest domestic energy supplier in Britain, is to reduce household gas prices by 5 percent, the company said on Monday.

The reduction in standard tariffs will benefit 6.8 million customers from Feb. 27, cutting annual energy bills on average by 37 pounds (56 U.S. dollars), it added.

The move comes after E.On reduced its standard gas prices by 3.5 percent last week.

British Gas said that the price cut reflected the recent fall in wholesale gas prices.

"We've been watching the significant moves in the international energy market extremely closely for some time, with the aim of helping customers with a price cut at the earliest possible opportunity," said Iain Conn, chief executive of Centrica, the parent company of British Gas.

"Operating in such a volatile market, no pricing decision is straightforward," Conn added.

Prime Minister David Cameron welcomed British Gas's reduction.

"It's welcome to see British Gas cutting prices. We'll continue to encourage energy firms to pass on falls in wholesale prices to customers," Cameron said. Endit