Household energy saving is set to be complemented with Britain's largest gas and electricity supplier announcing a drop in prices.

British Gas said its standard gas prices will fall by an average of seven per cent following the cut, which will take effect immediately and benefit eight million households.

It means that the typical customer will save £55 on their gas bills over the next 12 months.

The utilities giant has now made three price cuts over the last year, with dual fuel bills now reduced by an average annual amount of £187.

Phil Bentley, managing director of British Gas, said he was pleased the company is able to offer the lower rate during what is a particularly tough time for consumers.

"We know household budgets are stretched and that our customers are concerned about the effect the recent cold weather will have on their winter fuel bills," he explained.

This news comes after Moneysupermarket revealed that winter energy costs have jumped by 127 per cent since 2003, making the season the most expensive ever for heating and powering the home.