Southampton-based challenger brand Igloo Energy has announced it has cut prices on its single tariff for the third time this year.
The company has slashed its Igloo Pioneer tariff by 3.5 per cent meaning that a typical customer bill will now be £130 less than at the start of 2019.
The start-up supplier also claims that its tariff will be £420 cheaper than the big six energy companies’ standard tariffs, which are set at the current default price cap of £1,254.
Igloo cites the fall in wholesale gas prices as the reason it has cut its tariff.
Chief executive of Igloo Energy, Matt Clemow, said: “We’re proud to be lowering our customers’ bills for the third time this year.
“Although wholesale prices are falling, the big energy companies are still using their tease and squeeze approach, by offering cheap introductory prices to lure customers in while keeping their expensive variable tariff in line with the Ofgem price cap.
“We’re firmly committed to delivering the lowest prices we can to customers on our one simple tariff, whilst helping them to lower their energy consumption.”
While wholesale gas prices have been falling recently, Ofgem sets the level of the cap months in advance so the current price cap does not necessarily reflect the current wholesale costs.
Igloo announced price cuts to its Pioneer tariff in March and April, again citing a drop in wholesale gas prices on both occasions.
In February the company announced it had secured more than £600,000 of investment on the crowdfunding platform Seedrs.
Igloo said it will use the money to further develop the capabilities of its smart technology and expand its customer offerings.