Mid-tier supplier Bulb has announced it is to cut its prices by an average of £20 a year, following a fall in wholesale gas costs.
In a statement, the challenger supplier said the price drop means its single tariff is now £250 cheaper than standard plans offered by its big six rivals and that its prices are now 12 per cent lower than they were in December 2018.
It also added it will continue to make a “healthy” £50 profit per household, even after this change.
“Our single tariff reflects the true cost of supplying energy: when energy costs fall, we pass on those savings to our members,” said Bulb co-founder and chief executive, Hayden Wood.
“Last year, millions ditched the big six for a better deal on their energy. And with big six bills set to go up in a few weeks, there’s never been a better time to switch.”
Responding to news, the head of energy at comparethemarket.com, Peter Earl said Bulb’s price cut would put the recently-announced “price hikes” by big six suppliers 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,” said Earl.
“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.”
Earlier this week, Bulb was crowned one of the UK’s top tech scale-ups for 2019 by the annual technology showcase Tech5.
It was selected by a judging panel consisting of investors, influencers and technology experts. The hottest scale-up in Europe will be announced at an event in May in Amsterdam.
In 2018 Bulb was named as the UK’s fastest-growing private company and has more than 1 million customers.