The firm pointed out that its prices would fall before EDF Energy, which was the first firm to announce a price drop, but whose cuts will not kick in until 7 February.
The firm also said it would, for two months, waive cancellation fees for customers on fixed price deals that wanted to shop around for better deals.
“We are now at a point where costs, at least in the short term can justify a price cut,” said chief commercial officer Paul Massara. “It’s no obviously no coincidence that several energy companies have announced price reductions this week and we do not apologies for joining them.”
The company said the reduction meant that it would be less expensive than British Gas for the average dual fuel customer.