Challenger supplier Igloo Energy has announced it is dropping its prices for the second time this year as wholesale gas prices “remain low”.

The company revealed today (25 April) that it will drop prices by an average of 3 per cent. The news follows Igloo’s 2.6 per cent price reduction on 6 March.

Igloo Energy’s single tariff “Igloo Pioneer” is now £80 cheaper than the start of 2019 for a typical customer, according to the firm.

An “unseasonably warm” winter and spring has resulted in low wholesale gas prices and the company said it is “taking the opportunity” to pass more of these savings back to its customers.

Electricity wholesale costs have also remained low but “network and policy costs” continue to increase, Igloo said.

The supplier said it will absorb these increased costs “for now”.

On average Igloo will charge its customers £320 less per year than the Ofgem price cap, which came into force at the start of the year.

The revised price cap level, announced in February, saw all the big six suppliers increase prices in line with Ofgem’s £1,254 price cap level which came into effect on 1 April.

Matt Clemow, chief executive of Igloo Energy said: “We’re proud to be lowering our customers’ bills for the second time this year. Energy bills can be a huge drain on household finances, we’re committed to delivering the lowest prices we can to customers on our one simple tariff, whilst helping them to actively reduce their energy consumption. This doesn’t just save money, it saves the environment too.”

Igloo recently secured more than £600,000 of investment on the crowdfunding platform Seedrs.

Other suppliers to have dropped their prices this year include Bulb, Octopus, Outfox the Market and business energy supplier BES Utilities.