Bulb Energy has announced it is cutting its energy bills by 2 per cent, bucking the trend of major suppliers putting their prices up.
The reduction will apply to Bulb’s gas prices and means a million customers will save an average of £20 a year, bringing their average annual bill down to £1,000.
This is more than £250 cheaper than the new default tariffs of the largest suppliers who have all announced price hikes in the past few weeks.
Bulb has cut its annual prices by 2% – after all of the Big Six increased prices by 10% or more
Hayden Wood, Co-founder and CEO of Bulb said: ‘We’re on a mission to reduce bills and cut carbon emissions, so I’m pleased to announce another Bulb price drop today.
‘Bulb’s renewable energy is now £250 cheaper than standard Big Six plans. Our single tariff reflects the true cost of supplying energy: when energy costs fall, we pass on those savings to our members.
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‘Last year, millions ditched the Big Six for a better deal on their energy. And with Big Six bills set to go up in a few weeks, there’s never been a better time to switch.’
The firm is the UK’s eighth biggest supplier, just behind Ovo Energy, who today announced a 10 per cent price rise for the 160,000 customers on its standard variable tariff.
The move will add £18million to bills across the country with the hike also affecting customers on its community brands, which include Peterborough Energy, Fairerpower, Southend Energy and EnergySW.
All of the Big Six announced increases of 10 per cent or more for their standard variable tariff customers after Ofgem announced the price cap increase last month.
The price cap was initially put into place to help customers who never switch their energy bills. However, due to the change in wholesale costs, the cap has already shifted significantly.
The next review is due to take place in October of this year.
A number of other small suppliers have also announced increases, including Bristol Energy, Tonik and TOTO, who are rising their prices by up to £144 for their credit meter standard variable customers.
Prepayment customers will also feel the squeeze with Bristol Energy, First Utility, Tonik and TOTO increasing their bills by up to £108 per year.
Overall, around 15 million standard credit and prepayment customers have had a £1.7billion price rise confirmed for April 1.
Customers due to be affected by the hikes have been advised to switch their tariffs, which could save them an average of £324, according to uSwitch data.
Rik Smith, energy expert at uSwitch.com, said: ‘Challenger energy suppliers have largely followed the trend set by the Big Six and announced hikes to their standard tariffs.
‘Against this backdrop, Bulb’s decision to cut prices is all the more eye-catching.
‘Since Ofgem raised the level of the price cap, price increases have been confirmed by all of the Big Six plus nine smaller providers.
‘More will likely follow suit before the bill hikes take effect on 1 April.
‘If your supplier has priced within a few pounds of the cap, you’re on a bad deal. Over half the households in this country are already overpaying for their gas and electricity and in a month’s time they’ll be paying another £117.
‘The only way to make sure you pay as little as possible for your gas and electricity is to switch tariff and show suppliers you won’t be taken for granted. Now is the time to take action and save over £300.’