British Gas is to cut electricity prices by 10 per cent.

It is hoped the move will provide a boost to customers struggling to pay their bills; following massive price increases in 2008.

The cut follows the company’s 10 per cent cut on gas prices, which took effect in February. British Gas said the moves would save customers around £132 on their annual household energy bill, although price comparison site Uswitch said the average bill would still be 31 per cent higher than a year ago.

uSwitch said British Gas is now the cheapest electricity supplier in the UK, with their new package, Websaver 3, the cheapest online energy plan on the market. Ann Robinson, director of consumer policy at uSwitch.com, believes the price cut would be a relief for customers.

She said: “This cut will be some relief for those British Gas customers who are struggling to pay bills - it makes British Gas cheaper than any other electricity supplier in the UK, and it also means that they’ve got the cheapest online plan. This is giving choice to consumers, who had to deal with a 42% increase in energy prices last year. “Rather than holding out for further price cuts, consumers should help themselves now by making sure they are paying the lowest possible price for their energy and learning to use less of it. Moving to dual fuel, paying by direct debit and signing up to an online plan will all help save money – in fact switching to a competitive plan could cut your energy bill by up to £350. British Gas is helping consumers with this by offering the cheapest online plan on the market.”