LONDON Energy provider E.ON UK is to cut gas prices to residential customers by 6 percent from March 31, the company said on Monday.
Around 1.9 million monthly direct debit customers will benefit from a price cut of 42 pounds a year, the utility said.
Vulnerable customers on E.ON's WarmAssist tariff will see larger cuts, with an estimated 57 pounds a year reduction in gas prices from March 1.
E.ON is the third of Britain's big six energy providers to cut gas prices in 2010, after British Gas and Scottish and Southern.
Energy regulator Ofgem and the government have urged Britain's energy suppliers to cut residential customer bills to reflect the fall in wholesale prices.
"The fall in current wholesale prices is only part of the pricing story as our customers are using gas bought over a number of years at much higher prices than today," E.ON retail business managing director Graham Bartlett said.
The three yet to cut prices are RWE npower, EDF Energy, and Iberdrola's Scottish Power.