First Utility has announced a 3.6% price cut for its customers on the standard variable tariff.

That means those on the iSave Everyday tariff will see their annual energy bill reduce from £1,159 to £1,134.85.

The independent energy supplier claims its standard variable tariff is now lower than all of the Big Six companies.

First Utility is however urging customers to switch to its fixed price contract as they could save more money on their bills.

Its iSave Fixed v44 March 2016 dual fuel tariff stands at £919 a year and is available to both new and existing customers.

Last month Ofgem’s research found energy customers could save up to £250 a year by switching to a fixed price tariff compared to a variable one.

Ed Kamm, Chief Customer Officer at First Utility said: “While we have been able to make a cut in our standard variable tariff, our aim is to encourage customers to move onto a fixed tariff to take advantage of the best deals available.”

Last week the Competition and Markets Authority (CMA) revealed the UK’s Big Six energy companies could be overcharging customers by up to £234 a year.