Igloo Energy has announced a price drop of up to 30% for its gas customers.
The move from the challenger energy brand means a typical customer on its single tariff will now see bills be more than £320 cheaper annually than the larger energy companies’ standard deals, despite them having been recently reduced by the Ofgem price cap.
It notes reductions will vary due to differences in the cost of distributing gas regionally and suggests customers will see price cuts of between 22% and 30%.
The firm states coronavirus has significantly reduced industrial demand and as a result, wholesale gas prices have fallen, generating savings which it is passing on to the consumer.
It notes despite electricity wholesale costs having also fallen, increases in distribution costs and the impact of renewable schemes mean it has not cut the prices of these deals.
CEO of Igloo Energy, Matt Clemow, said: “At this incredibly challenging time for all UK households, we’re proud to be lowering our customers’ bills again. The impact of COVID-19 has been significant, reducing global natural gas prices dramatically, and is changing the way customers use energy at home, so we’re taking action early to pass on these significant savings as any good supplier should.
“We’re doing everything we can to support our customers through this difficult period and I’m incredibly proud of the Igloo team for continuing to deliver the same level of exceptional service that our customers have become accustomed to.”