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BRITISH GAS has fired the first salvo in what looks set to be a fierce energy price war. Its decision to reduce gas prices by 17 per cent and electricity tariffs by 11 per cent has already triggered a response from rival energy companies.

Gas and electricity prices at npower have been cut by 16 per cent and 3 per cent respectively, Powergen is cutting gas bills by 16 per cent and electricity bills by 5 per cent, while Scottish & Southern Energy (SSE) is lopping off 12 per cent from gas prices and 5 per cent off electricity.

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