Independent supplier First Utility has launched a new two-year fixed energy tariff claimed to be the cheapest on the market.
The dual fuel deal is fixed at a price of £929 for two years until March 2018.
Customers will however have to pay a fee of £30 per fuel if it is cancelled before the end of term.
The news comes amid calls for large energy suppliers to reduce bills for householders and follows the announcement of British Gas profits rocketing by 31% to £574 million last year.
First Utility claims customers on a Big Six variable tariff could save more than £160 by switching to the new deal.
Ed Kamm, UK MD & Chief Customer Officer First Utility said: “With energy prices so low, now is a great time to fix prices for longer, in the same way you would with a mortgage.”
Customers who switch to the new tariff will also receive £120 worth of retail vouchers.
Last week Energy UK revealed a growing number of customers are switching to smaller suppliers.