British Gas cuts prices by 5% starting from 27 August

Energy firm British Gas announced it will cut household gas prices by an average of 5%, its second price reduction of 2015.

The company said that the cut in prices, which will take effect from 27 August, would save households another £35 (€49.6, $54.7), bringing the total savings to £72.

The price cut, which is 5% on average and will differ per household, will benefit 6.9 million British Gas customers, the company announced.

Mark Hodges, Managing Director of British Gas, said the company hopes to show a commitment to providing a good offer to its customers.

"There are a range of costs that make up energy bills, some decreasing and others increasing. This reduction reflects our lower projected total costs for 2015 and 2016 and we're pleased that customers will see the benefits in their gas bills ahead of next winter," said Hodges.

In January, British Gas announced it would cut prices by 5% as well, which took effect in February.

The energy firm said in a statement: "Electricity prices remain unchanged despite the fact that several elements which make up the bill are rising steadily."