Challenger energy supplier Bulb has announced it is cutting its gas rates whilst stepping up its power prices.

The firm, which has more than 1.6 million customers in the UK, says the changes are driven by falling wholesale gas prices and higher electricity network and policy costs respectively.

Members with typical energy use will save £78 a year on gas, while electricity rates for the same member are expected to rise by £22, generating a typical annual saving of £56.

However, members who just use electricity at home will see an increase in their annual bill.

Hayden Wood, Co-Founder and CEO of Bulb said: “Our mission is to reduce our members’ bills and cut their carbon emissions, so it’s great we’re able to cut bills for over one million homes. By having a single tariff, our members know they’re always on our best deal, whether they joined us four years ago or just signed up this week.

“The wholesale cost of gas has come down, so we’re passing those savings on to our members. Higher network and policy costs have meant we’ve had to put up our electricity prices but most members will see their bills go down overall.”