More than one million households are likely to see their gas bills drop as supplier Bulb said it would pass on savings in the wholesale energy market to customers.
Bulb, which offers one single tariff to all customers, said the price cut will kick in on April 1 for all of its customers.
The energy supplier said it is lowering its gas rates to pass on savings from falling wholesale gas prices.
However it said it will be raising electricity prices due to higher network and policy costs.
Bulb has more than 1.6 million members in the UK.
Members with typical energy use will save £78 a year on gas. For the same member, electricity rates are going up by £22. Overall, that’s a saving of £56 on the annual bill.
Members who just use electricity at home will see an increase in their annual bill. A home with typical energy consumption on Bulb’s dual fuel tariff will see their annual bill fall from £1,000 to £944.
Prepay members who top up for both electricity and gas will also see an overall fall in their annual bill.
A dual fuel home with typical energy consumption will see their annual bill fall from £1,044 to £1,026, saving £18.
Prepay members who only use electricity will see an overall increase in their annual bill, on average an increase of £24 for a typical home.
It costs more to serve members who top up for their energy, reducing the overall saving the company is able to pass on. Bulb’s prepay tariff remains one of the best in the market for every region in the UK.
Bulb’s single ‘Vari-Fair’ tariff reflects the true cost of supplying energy, and its members will always be on the best price for their meter type.
Hayden Wood, co-founder of Bulb said: "Our mission is to reduce our members' bills and cut their carbon emissions, so it's great we're able to cut bills for over one million homes. By having a single tariff, our members know they’re always on our best deal, whether they joined us four years ago or just signed up this week.
"The wholesale cost of gas has come down, so we’re passing those savings on to our members. Higher network and policy costs have meant we've had to put up our electricity prices, but most members will see their bills go down overall."
Think you could be getting a better deal elsewhere? See our guide on switching your energy supplier, here .
