Scottish Power has become the latest energy firm to cut prices for online customers.

Its Online Energy Saver 7 deal is now the cheapest in six of the 14 energy regions for a typical household, and the joint-second cheapest overall, on average.

Price comparison website says a typical family will pay £952 a year for gas an electricity on the deal (see the Cheap Gas & Electricity guide).

This represents a drop of £23 a year. The discount applies to new and existing customers who signed up to the tariff since its launch three weeks ago.

The tariff is guaranteed to stay 3% below Scottish Power's standard direct debit gas and electricity prices until December 2010. There's also an up to £50 exit fee if you switch before then.

The cheapest tariff, as a UK-wide average, comes from Ovo, which yesterday cut typical costs on its New Energy Plan to £921 per year (see the Ovo price cut MSE News story).

Compare prices

While some firms' prices may be cheaper than others as an average, it doesn't mean they're best for you.

So always do a comparison first to find the right deal.

Many who've never switched before can save up to £250 a year, and even those who have switched before, could see savings over £100.

Further reading/Key links

Slash energy costs:

Capped tariff ending soon?