Independent energy supplier First Utility has launched what it claims is the cheapest tariff on the market.

The new iSave Fixed v44 March 2016 dual fuel tariff costs an average of £919 a year – fixed until after 2015/2016 – and is available to both new and existing customers.

A termination fee of £30 per fuel will be charged if the tariff is cancelled before the end of term.

Chief Customer Officer Ed Kamm said: “We are committed to offering the best energy deals and engaging our customers to ensure they are on the best tariff for them. That’s why we’ve continually dropped the prices of our cheapest tariffs this year as wholesale prices fall.”

Earlier this week E.ON also introduced a one-year, dual fuel fixed tariff with an average annual price of £923 and reduced gas prices by 3.5%.