Energy firms in price war British Gas has cut bills for more than five million customers by announcing an average five per cent drop in its standard electricity tariff. The price cut will take effect immediately and will knock an average of £24 from customer's bills - just months after the Centrica-owned company increased gas bills by 18 per cent and electricity by 16 per cent in August. While British Gas said there was no reduction in its gas price, Southern Electric and Swalec owner SSE said later that it would cut the price of household gas by 4.5 per cent from March 26. The moves follow an announcement by French-owned rival EDF to cut gas prices by five per cent. Other operators are expected to follow suit.