German giant E.ON has announced plans to reduce household gas prices by 6% and has announced plans to simplify bills.

The company claims that its gas prices will on average be £26 a year cheaper than British Gas, which recently lowered prices by 7%.

The firm, which serves about 5.5 million customers in the UK, has previously reduced prices in July 2009.

Recently, Scottish & Southern Energy reduced their gas prices by 4% following on from British Gas.