One of the smaller energy companies has slashed its gas prices by more than a 10th in response to falling wholesale costs.
Ovo Energy said it was dropping the price of gas by 10.4%, a reduction which is more than double the largest cut announced by any of the Big Six major energy firms in recent weeks.
The cut, which comes into effect on March 1, means that Ovo’s dual fuel standard variable tariff will be reduced by 5.8%, resulting in an average saving for customers of £65 a year.
The average dual fuel bill for customers on the standard variable tariff will now be £1,051, down from £1,116, the company said.
The Government warmly welcomed the announcement.
Energy and Climate Change Secretary Ed Davey said: “Energy companies can’t hide – this shows what’s possible when it comes to cutting bills.
“The old energy giants are facing record competition thanks to our reforms, and it’s bill payers who will benefit.
“If people aren’t satisfied, now is the time to shop around and join the huge numbers who are switching and saving hundreds of pounds.”
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