British Gas has announced a reduction in tariffs for residential gas and electricity customers following on from last year's fall in wholesale energy prices.
From March 12th onwards domestic gas customers' bills will fall 17 per cent, while electricity customers will witness an 11 per cent reduction in tariffs.
The utility's parent company Centrica says that the average dual fuel customer will see their annual bill slide £167 to £953, making British Gas the cheapest supplier for the "overwhelming majority" of energy customers.
Energy companies have been roundly criticised for not reflecting recent falls in the price of wholesale gas in domestic tariffs after upping them to unprecedented levels last year.
The industry regulator Ofgem also revealed last month that a record four million consumers switched gas and electricity suppliers in the first ten months of 2006, which led to British Gas' market share falling below 50 per cent for the first time ever.
British Gas managing director designate Phil Bentley today insisted however that the firm was "taking the lead" on translating reductions in wholesale gas prices to Britons' bills.
"As a result of this move our customers will be better off and for many vulnerable households that struggle to balance their bills, our social tariff will remove the burden of not being able to access our cheapest prices, typically direct debit, irrespective of their method of payment," he said.
Centrica chief executive Sam Laidlaw added: "The billions of pounds we have committed to gas contracts underpinned the construction of new undersea pipelines that are now delivering additional gas supplies to the UK.
"These new supplies of gas have directly led to the fall in wholesale prices which we can now pass on to our customers. Our price cut still enables British Gas to make a sustainable margin in 2007 and allows for further investments in the future."
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