British Gas has launched a campaign with CHI & Partners to advertise that it is cutting its electricity prices with immediate effect.

The company aims to rival EDF Energy with its 5% price cut coming into place immediately, while EDF’s cut will not occur until 7 February.

Ian Peters, managing director of energy, at British Gas, said: "We want to keep prices as low as possible for our customers. Household budgets are stretched, and we are doing everything we can to help our customers keep their bills down.

“This price reduction means British Gas is once again offering the cheapest standard electricity, on average, of any major supplier."

It has been revealed that the TV ad has been in planning for weeks, and has not been made as a reaction to the announcement by EDF on Wednesday.