CNA Centrica Plc

  By Tapan Panchal 
 

LONDON--Centrica PLC (CNA.LN) said Monday that its unit British Gas will reduce household gas prices by 5%, becoming the second U.K. energy utility to reduce prices after E.On.

The price cut by British Gas equates to an average 37 pounds ($42.7) reduction in annual energy bills. E.On last week announced a 3.5% cut on its standard gas prices, equivalent to GBP24 off an average annual household gas bill.

The company said the price cut reflects the recent fall in wholesale gas prices and is effective from Feb. 27.

Centrica shares at 1007 GMT trading 0.2% lower at 264 pence.

-Write to Tapan Panchal at tapan.panchal@wsj.com

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