Borders-based Spark Energy, the independent energy provider which specialises in the UK rental sector, has announced a 3.4% reduction in prices.
The price cuts will apply from the March 1 to all of its standard direct debit customers. This represents an annual saving of £42 for an average dual fuel user.
It is the first supplier outside the Big Six to announce a price cut for existing customers and new customers who join the company – following recent demands by senior politicians for price reductions to be made after falls in wholesale energy prices.
However Chris Gauld, Chief Executive, Spark Energy, said that this reduction was not purely down to the result of these falling prices.
He said: “Our supplies are hedged well in advance, and we bought the energy that our customers are now using about 18 months ago. At the same time industry costs and government levies are increasing.
“This price reduction is possible due to the continued growth in size and efficiency of our business stemming from over £2.5m of recent investment in customer experience and new technology.
“It’s very important for us to offer better value for money than the Big Six energy suppliers and we will always pass on savings to our customers at the earliest possible opportunity. We are pleased to be able to do so in this instance. We’re keeping prices under constant review subject to any further moves in the wholesale price.”
Based in Selkirk, Spark Energy is one of the biggest employer in the area, with 200 staff turning over £80 million per year.