British Gas customers stand to benefit from a new cut in electricity costs.
The UK's biggest energy provider has announced a ten percent reduction in its electricity tariffs, effective immediately.
British Gas standard energy dual fuel customers - who get both their gas and electricity from the supplier - now stand to pay £46 a year less for their energy than before. However, the annual bill of £1,194 is still far higher than the £912 paid in January 2008.
Last year, energy firms hiked prices across the board due to a boom in the wholesale gas and electricity markets. However, market prices have fallen after peaking in the summer, resulting in providers beginning to reduce their tariffs once more.
In all, British Gas is thought to have raised its customer prices by 46 percent across 2008. This included a one-off 35 percent rise for gas tariffs towards the middle of the year.
Robert Hammond, energy expert for Consumer Focus, said: "This is a very disappointing announcement for consumers, particularly as it is likely to set the tone for the level of energy price cuts across the board.
"We would have expected much bigger reductions considering that wholesale gas and electricity prices are half what they were at their peak last year."
Around 4.5 million customers will be affected by the latest price cut.
