Octopus Energy has become the first supplier to announce a price reduction of 2% for customers this year.
Around a quarter of a million households on the standard variable tariff (SVT) are expected to save around £80 on average, with their annual dual fuel bill falling to £1,008.87.
Hundreds of thousands of customers on variable tariffs with its while label companies, including Co-op Energy, M&S Energy and Affect Energy, will also see similar reduction on their bills.
Co-op Energy customers will see the biggest price cut at £160 a year on average, followed by M&S Energy customers saving £22 annually and Affect Energy and Octopus Energy customers saving £20 a year.
Customers on the SVT will pay £169 below Ofgem’s energy price cap on average, helping them save a total of £21 million over the next year.
Greg Jackson, CEO of Octopus Energy Group said: “We’ve invested heavily in technology to enable us to deliver long-term low prices. Whilst other companies gleefully set prices close to the price cap level, we cut prices for new, loyal and acquired customers alike.
“You can always get a cheaper deal by spending precious time finding a loss-making tariff from a ‘tease and squeeze’ supplier but their loyalty penalty means there’s usually a sting in the tail after the introductory offer ends. Octopus chooses to cut prices for loyal customers as well as new ones.
“And we’re not compromising on renewables either: we still supply green electricity and more importantly, are driving change to make the whole system greener.”