Bulb customers are set to save £20 on their annual energy bills later this month as the supplier announces a new raft of price cuts.
The cuts follow a drop in the wholesale cost of gas, which is now 12% lower than it was in December 2018. Bulb is the first energy supplier to share these savings with its customers.
On 21 March 2019, the average yearly cost of energy for Bulb’s customers will decrease from £1,020 to £1000, a 2% drop.
The company, which was founded in 2015, has dropped its prices nine times in the four years it has operated. Bulb serves an estimated one million customers. The provider also proudly supplies “100 per cent renewable gas to customers” and only has one variable tariff.
Recently, Ofgem announced that the energy price cap would increase, which was followed by all of the Big Six suppliers announcing they would increase their prices this April. This means that Bulb will be charging its customers about £250 less than most other energy suppliers.
Co-founder and CEO of Bulb, Hayden Wood, said: “We’re on a mission to reduce bills and cut carbon emissions so I’m pleased to announce another Bulb price drop today. Bulb’s renewable energy is now £250 cheaper than standard Big Six plans.
“Our single tariff reflects the true cost of supplying energy: when energy costs fall, we pass on those savings to our members. Last year, millions ditched the Big Six for a better deal on their energy. And with Big Six bills set to go up in a few weeks, there’s never been a better time to switch.”
The Big Six energy firms have recently faced criticism because their standard tariffs are all more or less identical in cost. Hayden Wood was among the voices to express disappointment in how the Big Six have begun to set their tariffs.
He said: “We can’t believe the Big Six are once again ganging up around the price cap and squeezing every last penny they can out of their customers. It’s clear their tariffs don’t represent good value. The price cap should be a limit, not a target.”
Amit Gudka, a co-founder of Bulb, explained: “Happily, the cost of supplying gas has continued to come down and we’re now able to drop our gas rates. Due to increased network and policy costs for electricity, we aren’t able to drop our electricity rates at this time.”
Last year, households faced 57 energy-related price hikes, a dramatic increase from 15 in 2017.
Consumers are encouraged to compare tariffs available on the market and switch to a cheaper energy deal if one can be found. Smaller energy suppliers are now more likely to offer a cheaper standard tariff.