Energy industry watchdog Consumer Focus has criticised British Gas for failing to implement a more dramatic price cut for people looking to switch gas and electricity companies.
The supplier announced an immediate ten per cent price reduction on its gas tariffs, but Consumer Focus said the cut failed to reflect the extent to which wholesale costs have fallen over recent months.
Robert Hammond, an energy expert with the organisation, said the development raised further questions as to the fairness of energy tariffs faced by homeowners in the UK.
Mr Hammond said: "We would have expected much bigger reductions considering that wholesale gas and electricity prices are half what they were at their peak last year."
He added that although the price cut will mean that as many as 160,000 households will no longer be living in fuel poverty, this figure will be cancelled out by the number of homes affected by soaring unemployment.
Many energy companies have been criticised for implementing price reductions which fail to match the scale of increases from last year.
If you want to find out more about your energy options and how you could save up to £378 in minutes, click here.