British Gas has announced new rates for pre-payment customers which will reduce prices by an average of £22 a year.

The new rates will come into effect on 18 December for dual fuel pre-payment customers.

Phil Bentley, Managing Director of British Gas, said: "We are always trying to bring down our costs and have a dedicated team who focus solely on improving the service we give our pre-payment customers. For example, we are the only supplier to give pre-payment customers peace of mind over energy prices by introducing long-term fixed-price contracts. Now we have identified cost savings, and are passing these on to our customers.

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"At British Gas we are committed to passing savings on to our customers wherever we can. And, while wholesale gas prices are still high, they are falling; if that continues, we are hopeful we'll be able to reduce prices for all our customers next spring."

(CD/KMcA)