British Gas has announced it will reduce its standard tariff gas prices by 10% from 19 February.
British Gas has announced it will reduce its standard tariff gas prices by 10% from 19 February.
It said the move would benefit more than 7.5 million homes and cut £84 from the average annual gas bill.
It said the move would benefit more than 7.5 million homes and cut £84 from the average annual gas bill.
British Gas said it was the first UK major energy supplier to announce such a cut since 2007.
But observers said that even if rivals followed suit, it was "too little and too late" to make a significant difference to winter fuel bills.
But observers said that even if rivals followed suit, it was "too little and too late" to make a significant difference to winter fuel bills.
Wholesale falls
Price cuts will not apply to those on fixed tariffs. Bills will automatically fall for direct debit customers.
British Gas, which is part of the Centrica group, trades as Scottish Gas in Scotland.
British Gas said it was the first UK major energy supplier to announce such a cut since 2007. Part of the Centrica group, it trades as Scottish Gas in Scotland.
In July 2008, it raised its gas prices by a record 35%, while other firms lifted prices by more than 20%.
'Committed'
In July 2008, the firm raised its gas prices by a record 35%, while other companies lifted prices by more than 20%.
It's going to give some customers a bit of respite at a time of year when they are are going to be spending significant amount on heating their homes Tim Wolfenden, USwitch.com
At the end of last year the "big six" energy companies were urged to pass on lower wholesale gas prices.
At the end of last year the "big six" energy companies were urged to pass on lower wholesale gas prices.
It's going to give some customers a bit of respite at a time of year when they are are going to be spending significant amount on heating their homes Tim WolfendenUSwitch.com
British Gas managing director, Phil Bentley, said the firm understood that energy prices were a "significant" part of their customers' outgoings.
The cost of wholesale gas is linked to the price of oil, which has fallen significantly from the peak it reached in summer 2008.
"We are committed to providing the best possible prices for customers," he said.
"This price cut will go some way to helping customers manage their budgets, and we will continue to do what we can, when we can."
Watchdog Consumer Focus welcomed the price cut, saying British Gas had "done the right thing".
But chief executive Ed Mayo added: "There are millions of dual fuel and electricity only customers that will not see a penny off their bill.
"We will now turn the heat up on the other five companies that are keeping prices sky high."
At the beginning of January, Scottish Power, one of the major suppliers, said it was relaunching one of its fixed-price gas products with a reduction of 10%.
At the beginning of January, Scottish Power, one of the major suppliers, said it was relaunching one of its fixed-price gas products with a reduction of 10%.
The average UK household energy bill is £1,293, some 42% higher than the same time last year.
'Grand gestures'
Better deal?
The cost of wholesale gas is linked to the price of oil, which has fallen significantly from the peak it reached in summer 2008.
The move was a "positive first step" towards lower prices, said Tim Wolfenden, head of home services at price comparison website USwitch.com.
Mr Mayo said: "Consumers would not have to rely on occasional grand gestures by energy companies if the market was more transparent and competitive in the link between wholesale and retail prices."
British Gas's move was a "positive first step" towards lower prices, said Tim Wolfenden, head of home services at price comparison website USwitch.com.
"It's going to give some customers a bit of respite at a time of year when they are going to be spending a significant amount on heating their homes," he said.
"It's going to give some customers a bit of respite at a time of year when they are going to be spending a significant amount on heating their homes," he said.
But he added that by only cutting gas prices and leaving electricity alone, the move suggested suppliers were feeling "very cautious".
But he added that by only cutting gas prices and leaving electricity alone, the move suggested suppliers were feeling "very cautious".
"Energy price cuts are likely to be too little and too late to help consumers with this winter's fuel bills. More importantly, it is now looking highly unlikely that price cuts are going to wipe out last year's painful hike in household energy bills."
"Energy price cuts are likely to be too little and too late to help consumers with this winter's fuel bills. More importantly, it is now looking highly unlikely that price cuts are going to wipe out last year's painful hike in household energy bills."
Other firms were likely to cut prices fairly swiftly, Mr Wolfenden added.
Other firms were likely to cut prices fairly swiftly, Mr Wolfenden added.
And he urged people to see whether they could get a better deal on their energy bills - especially if they had never swapped supplier before.
And he urged people to see whether they could get a better deal on their energy bills - especially if they had never swapped supplier before.
Will you benefit from the price cut? Are you locked in on a fixed deal? Should rival companies follow suit? Send us your comments using the form below:
Will you benefit from the price cut? Are you locked in on a fixed deal? Should rival companies follow suit? Send us your comments using the form below:
