Octopus Energy has announced its standard tariff will be £50 cheaper than the April price cap - but only for existing customers.
The new rate applies to the Octopus Flexible variable tariff, although it is unlikely to ease the financial burden too much for struggling families as energy costs continue to rise.
Octopus Flexible is being quoted at £1,921 a year for someone with typical energy use, while the price cap will jump to £1,971 for direct debit customers, up from the current level of £1,277.
The new Octopus rate also only applies to customers who joined the energy firm by March 3, 2022, or if you’re coming off a fixed deal before April 2, 2022.
Meanwhile, the cost of default tariffs for new customers will be £1,969 - just £2 below the price cap. The new Octopus Flexible tariff will kick in from April 2.
The price cap sets a limit on the rates a supplier can charge for each unit of gas and electricity you use and is reviewed twice a year.
As it isn't a cap on your total bill - as the name suggests - if you use more energy, you'll pay more, or use less and you'll pay less.
Are you worried about paying your energy bills this winter? Let us know: mirror.money.saving@mirror.co.uk
At the moment, rising energy bills mean there are no fixed-rate deals on the open market that beat the price cap - leaving many households better off on standard variable rates.
This means the usual advice of switching energy suppliers has been turned on its head during the cost of living crisis, due to sky-rocketing wholesale gas prices.
The only exception is for some existing customers, who may find their energy provider offers them a deal that matches - or betters - the price cap.
For example, earlier this month, a cheap fixed-rate deal by E.on was pulled just hours after it was flagged by Martin Lewis.
The MoneySavingExpert founder had flagged the E.on Next Online V11 one-year fix to his 1.3million followers on Twitter, which was set at the same rate as the April 2022 price cap.
The Ukraine crisis also means energy prices are predicted to rise even further later this year, with experts warning that we could see another 40% rise on the price cap in October.
This would take the typical bill for an average energy user to £2,900 per year or more.
Unsurprisingly, the majority of energy firms have hiked their standard tariffs to the maximum allowed by the April price cap - including British Gas, E.on and Bulb.
Outfox the Market, Scottish Power, Shell Energy are also increasing their rates to £1,971 level, while EDF Energy, Ovo and SSE are £1 cheaper at £1,970.
Utility Warehouse is £11 cheaper than the April price cap at £1,960.
