12 January 2012 BBC News

British Gas has cut its electricity prices by 5% with immediate effect, while SSE will reduce gas tariffs by 4.5% on 26 March. 

The moves come a day after EDF Energy announced plans to cut its domestic gas tariff by an average of 5% owing to low energy use during the mild winter.

The price cuts will add pressure on the rest of the major suppliers to cut their tariffs as wholesale prices dip.

British Gas said the average annual domestic bill would fall by £24.

"We want to keep prices as low as possible for our customers. Household budgets are stretched, and we are doing everything we can to help our customers keep their bills down," said Ian Peters of British Gas.

"This price reduction means British Gas is once again offering the cheapest standard electricity, on average, of any major supplier."

The price cut comes after a 16% rise in electricity prices and an 18% rise in gas prices for British Gas customers in August. 

Veiw the full article on the BBC's website.