Small electricity supplier Extra Energy is the latest to offer a tariff under £1,000 for domestic customers.
First Utility and Ovo Energy have brought out similar deals.
At £990 a year, Extra Energy’s ‘ValuePlus Fixed Price Sept 2015 v1’ is £275 a year cheaper than the average standard plan on the market for customers paying by cash or cheque, according to market commentators.
The firm’s German sister company Extra Energie supplies 1 million homes in Germany, according to the Which? website.
Emma Bush, energy expert at uSwitch.com says: “These smaller players are certainly giving the big six a run for their money, and challenging suppliers of all sizes to up their game to win over customers.”
She adds: “Our data shows that more and more people are voting with their feet and switching to smaller providers, who now provide eight out of the ten cheapest deals.”
Energy suppliers with fewer than 100,000 customers do not have to pay for government-required fuel poverty and insulation schemes. This has led some of them to undercut their ‘Big Six’ rivals.