By Marcus Leach

Following yesterday's decision by EDF Energy to cut their gas prices British Gas have quickly followed suit and slashed their prices by 5%.

The 5% cut, which applies only to gas, comes into effect immediately following a mild winter and drop in wholesale prices.

British Gas's decision will now put the pressure on other energy suppliers to also cut places, as a price war looks set to break out.

British Gas said the average annual domestic bill would fall by £24.

"We want to keep prices as low as possible for our customers. Household budgets are stretched, and we are doing everything we can to help our customers keep their bills down," said Ian Peters of British Gas.

"This price reduction means British Gas is once again offering the cheapest standard electricity, on average, of any major supplier."

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