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British Gas is to cut its gas and electricity prices by ten per cent from February 10th.

The firm claims over 7.5 million households will benefit from the cut to the tune of an average of £84.

However, due to price hikes over the last year – which mean British Gas prices are 46 per cent higher now, before the price cut, than in January 2008 – sees average annual gas and electricity bills standing over the £1,000 mark.

Anger has also come at British Gas for cutting rates after the winter.

A British Gas spokesperson explained prices were still high.

However, he defended the company saying it bought gas in advance to protect customers from volatility in the market.

"For this winter we bought gas in the summer and we are still supplying that gas," he said.

"We are now buying gas again and can pass on the cuts to customers."

Other players in the energy market are now expected to follow suit and cut prices – just as they did in almost unison with increasing their tariffs.

"It would not surprise us if competitors followed," the British Gas spokesperson said.

Further cuts, however, were not promised.

"It is difficult to say about future cuts. Prices are still high and it is hard to predict where they will go," he said.

British Gas maintains the firm still hold the most competitive online dual fuel deal and they expect "an awful lot of switching" in the coming months, after some five million people change energy providers across the whole industry last year.