Scottish Gas has confirmed it will cut its energy bills for customers.

The firm, which operates as British Gas in the rest of the UK, will cut gas prices by 5% of 27 February.

Part of the Centrica group, the energy supplier said the cuts would reduce the average household's annual energy bill by £37.

In a statement, the company said the move reflects the recent fall in wholesale gas prices, which suppliers have been urged to pass on. It added that it would continue to keep its prices under review, subject to any further changes in wholesale prices.

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Commenting on the announcement, Iain Conn, Chief Executive of Centrica plc, said: "We've been watching the significant moves in the international energy market extremely closely for some time, with the aim of helping customers with a price cut at the earliest possible opportunity. Operating in such a volatile market, no pricing decision is straightforward.

"We bear the responsibility of managing the risks of buying energy ahead on behalf of our customers, who value the predictability this brings. Taking this decision now, at a time of continuing uncertainty, shows our absolute commitment to pricing competitively, with customers at the forefront of our minds."

Ian Peters, Interim Managing Director of British Gas, added: "This price cut, worth £37 off the average annual bill, will help our customers keep their energy costs down at a time when many household budgets are still under pressure."

(JP/MH)