Energy supplier First Utility has slashed its charges for customers who don’t pay by direct debit from £8 a month to £2.

The cut applies to all the small supplier’s customers immediately, meaning charges tot up to just £24 a year.

It is piggybacking on the recent outcry from MPs over the “huge discrepancy” in charges. On Tuesday in parliament, Tory MP Robert Halfon complained charges were on average £114 more for people who pay with cash or cheque versus direct debit.

The cut is likely to be a harmless move for the company as the “vast majority” of its 320,000 customers pay by direct debit.

Ed Kamm, Chief Customer Officer at First Utility said: “Our mantra is to help consumers minimise their energy spend by offering lower tariffs and campaigning for change in the industry to reduce costs and put more power in the hands of the consumer.”