Energy suppliers E.ON have announced plans to cut standard gas prices by six per cent.
The price cut is expected to come into force at the end of this month and is aimed at attracting consumers who are looking to switch gas providers.
E.ON said the reduction will benefit around 1.9 million customers, although households on fixed or contract deal will not be affected.
It is believed that the average E.ON customer paying by direct debit will save around £42 a year when the price cuts are implemented on March 31st. The company said gas customers will be on average £26 a year better off than if they were with British Gas.
Graham Bartlett, managing director of E.ON's retail business, said: "We've been very aware of the effect of both the recession and the exceptionally cold winter on our customers, especially those most in need, so we are pleased to see the opportunity to now reduce prices."
In March last year, E.ON reduced electricity prices by nine per cent and gas prices by 3.3 per cent.
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