Igloo Energy has dropped the price of its single tariff by 2.6%.
The challenger energy brand said the move will mean a typical customer on its Igloo Pioneer contract will see a £36 reduction on their gas and power bills every year.
The firm suggested the move has been enabled by a 12% fall in wholesale gas prices since December, which has happened as a result of a milder winter leaving gas storage levels relatively topped up.
It noted while wholesale electricity costs also dropped by 12%, increasing network and policy cost pushed up overall prices.
The company claims on average, it is charging its customers £269 less per year than Ofgem’s standard tariff price cap.
CEO Matt Clemow said: “Despite some energy providers ramping their costs by up to 10% since Ofgem changed its price cap, we’re proud to be lowering our customers’ bills thanks to a drop in wholesale costs.
“Energy bills can be a huge drain on household finances, so we’re committed to keeping our prices as low as possible whilst helping our customers to actively reduce their energy consumption. This doesn’t just save money, it saves the environment too.”