The announcement sees the supplier offer a larger cut that the big six, which have all announced price cuts of around 5 per cent over the last two weeks. The cuts come in response to calls from energy secretary Amber Rudd, Ofgem chief executive Dermot Nolan and consumer groups for suppliers to reflect falling wholesale prices.
Ecotricity said its customers would save aroound £46 a year as a result of the cut.
Ecotricity founder Dale Vince said: “We’re pleased to be able to do this… and we think 7 per cent better reflects the reduction in wholesale costs.
“The 5 per cent reductions that we’ve seen so far around the industry just aren’t enough.”