The growing independent supplier offered a 5 per cent tariff reduction earlier in the year, meaning its tariff is now almost 8 per cent lower than it was in January.
Utilita’s managing director Bill Bullen said the company was able to pass on the savings as a result of lower wholesale gas prices which have followed the collapse of the global oil price over the last year.
“If we pay less, we want our customers to do so too,” Bullen said.
“As we approach the autumn – a time when gas consumption rises – we will do all we can to ensure Britain’s hard-pressed families, and especially the elderly, have as much peace of mind as they can in the coming months – and not pay unnecessarily high prices for their energy,” he added.
The price cut from a rising player within the market may serve to increase pressure on the larger incumbents to follow suit.
The calls to cut prices have grown steadily in the months since the general election. Energy secretary Amber Rudd warned the big six to pass on the historic lows in wholesale gas as one of her first moves in the role, and recently told a Utility Week Lobby Reception that customer costs will remain her department’s key focus.
Utilita’s business model focuses on the pre-pay market where it has doubled its customer base from 100,000 pre-pay customers in April 2014 to 200,000 in April 2015.