British Gas (BG) customers have been presented with a huge saving and investment opportunity as the company has cut the cost of its energy, with gas being reduced by 17% and electricity by 11% from today.

The average annual dual fuel bill will fall by £167 to £953 British Gas has said, with the company will continuing to make a significant UK investment into its services.

Since February, when BG said it would cut its prices, four of the UK’s biggest energy companies have also pledged to cut their prices in line with the move by BG.

However, critics pointed out that BG has increased its gas prices seven times and its electricity costs six times since 2002, putting vulnerable groups like the elderly under severe financial stress.

But the 50% fall in wholesale gas prices over the past six months has enabled BG to pass on the reduction to its customers while still generating enough revenue for its UK saving and investment plans.

Karen Darby, chief executive officer of uSwitch, an energy supplier switching firm, said: “As wholesale costs have fallen sharply in recent months, a price cut from BG is not before time.

“This is a step in the right direction and will help the many families that struggle to pay their energy bills. However, as its energy prices have rocketed in recent years, the company still has some way to go to redress the balance.”