Energy supplier First Utility has slashed it fixed price energy tariff to £935 a year.
It said the drop was possible because of plunging wholesale prices.
The new dual-fuel tariff – i.e. for gas and electricity – fixes prices up to winter 2015/16 at £935 based on typical household usage.
Prices under the tariff will vary by region though and are based of payment by Direct Debit and paperless billing.
Chief Customer Officer Ed Kamm said: “As the cost of wholesale energy continues to fall, First Utility believes in passing these savings onto customers.”
He said cold weather warnings on the way this January meant now is the time to switch “to keep bills as low as possible”.
What were average prices last year?
Statistics from DECC which are yet to be firmed up suggest the average energy bill across all payment types was £1,555 in 2014.
This is combining the average yearly electricity bill in 2014 – which rose by £15 (2.6%) from 2013 to £592 0 with the average gas bill, which rose by £24 (3.3%), to £753.
The average bills are based on standard consumption of 3,800 kWh per year for electricity and
15,000 kWh per year for gas.