ScottishPower has become the third major energy supplier to announce a price cut.
It has pledged to reduce gas prices by 4.8% from 20th February.
That means customers on the standard tariff will see savings of £33 on their annual gas bills. Those already on fixed-priced tariffs can also move between tariffs, without paying any exit fees.
ScottishPower has also launched a new fixed-price tariff, with an average dual fuel bill value of £930.
Neil Clitheroe, ScottishPower’s CEO of Retail and Generation said: “Today’s decision has been made to benefit our customers and keep our prices competitive. We will continue to keep our prices under review.”
Energy Secretary Ed Davey welcomed the news.
He added: “Competition is hotting up and customers will see the benefits. With the market getting more competitive there’s even more pressure on other energy companies to drop their prices.”
He is urging consumers to check their tariffs to see if they are on the best deal.