Energy supplier Utilita has announced it is cutting gas prices in 2016.

Prepayment customers will see a 3.5% price reduction on their gas bills.

That will save consumers £21.80 per year, according to the company.

It claims this is the third price cut so far this year and more than a quarter of a million households in the UK have seen a 9.5% reduction in 12 months – equivalent to an annual saving of £62.90.

Utilita Energy CEO, Bill Bullen said: “Britain’s families – and in particular the elderly – are hard-pressed as it is this time of year and so we will do everything we can to help them.

“Our customers are entitled to this further cut quite simply because wholesale oil markets continue to fall – our view is if we pay less, we’ll always aim to ensure our customers pay less too.”

Earlier this week the Competition and Markets Authority (CMA) said customers on prepayment meters pay £250 more for energy.