Renewable energy supplier Bulb will be reducing its variable dual fuel tariff by about 3% next week, with the firm claiming a recent drop in wholesale costs has led to the £30/year average discount.
The small supplier will cut the cost of its 100% renewable gas and electricity variable tariff (the only tariff it offers) for its tens of thousands of customers on Monday 24 April.
The average Bulb customer pays around £1,000/year, meaning the 3% reduction will net a £30/year saving.
The decision to cut the price of the tariff follows a raft of recent price hikes among the big six suppliers, with EDF last week becoming the latest provider to up its rates.
One of the main reasons given by big six bosses for rising energy rates has been escalating wholesale costs (this is the price suppliers pay for their energy). However, Bulb claims that since the start of the year the wholesale cost of energy has actually fallen by 12%.
Hayden Wood, co-founder of Bulb, told MoneySavingExpert.com: "We're not surprised by the big six's recent price hikes. When one goes, the rest of them follow. However, at a time when the wholesale cost of energy has gone down, consumers deserve a fair deal from their energy supplier.
"That's why Bulb passes on cost reductions to its members quickly and is reducing its tariff by 3% on Monday, and we're calling on other independent suppliers to do the same."
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