ENERGY supplier Bulb is cutting bills by £20 a year for 1million customers, bucking the trend of major suppliers putting their prices up.
The reduction will apply to Bulb’s gas prices and means their customers will now pay around £1,000 per year.
Smaller energy supplier Bulb has cut its prices, following price hikes by the Big Six
That is more than £250 less than the new default tariffs of the largest suppliers, which have all announced price rises from April 1 taking bills to £1,254 – the maximum allowed under the Government’s new price cap.
In fact, standard tariffs with the Big Six energy firms are now identical – prompting claims they are running a cartel.
Smaller energy supplier Bulb – which provides 100 per cent renewable electricity and 10 per cent renewable gas to customers – only has one tariff, which is variable.
It says it’s able to cut prices as wholesale costs have fallen by 12 per cent since December.
Yet Bulb increased its prices several times last year, pushing up household bills by an average of £170 per year.
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Hayden Wood, co-founder and chief executive of Bulb, said: “Our single tariff reflects the true cost of supplying energy: when energy costs fall, we pass on those savings to our members.”
Meanwhile, Peter Earl, head of energy at comparison website Compare The Market, said: “Bulb’s action puts the Big Six’s big price hikes under the spotlight.
“It also calls into question the new price cap level and how it was calculated, given that its new rate will be £254 on average cheaper than the price cap level coming into force in April.
“By passing on the savings in wholesale gas prices, rather than retaining the difference as pure profit, Bulb has recognised the anger people have with repeated price hikes by their energy supplier. This move could really shake the market up.”
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Last year was the worst year ever for energy price rises with households being hit with 57 price hikes, compared to just 15 in 2017.
If you are considering changing your supplier, then these are the cheapest tariffs you can switch to ahead of Ofgem’s new price cap.
Meanwhile, gas hobs and boilers could be banned in new homes within six years due to carbon emissions.
Ofgem video explains how the energy safeguard tariff or price cap works
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