Ovo Energy has launched a new energy tariff that is cheaper than the Government's Energy Price Guarantee.
The new energy tariff is a one-year fixed rate of £2,275 based on typical dual-fuel use.
This means the offer is £225 less than the Energy Price Guarantee, which has capped the cost of a typical household’s annual energy bill at £2,500 until July.
The new deal has been launched as the wholesale price of gas has started to fall.
Wholesale gas prices have dropped by more than 80% since their peak last August, though they are still roughly triple what they were before the energy crisis began.
The new tariff, the first of its kind to enter the market since last year, is available to Ovo customers through their online account, or through MoneySuperMarket, if they are registered for its energy alerts.
Ovo Energy told Mirror Money that it was launching the tariff because customers wanted "the security of a long term fix to protect them against the continuing energy price uncertainty".
Although it may be good news that the price of gas is falling, experts have warned about "locking in" too early to a new tariff.
MoneySavingExpert.com founder Martin Lewis has urged people to be "very careful" not to just "jump on a fix"
Martin said: "People need to be very careful not to just jump on a fix because it costs less than they're paying right now... because wholesale rates - the rates energy firms pay - have dropped, it's likely the price cap will drop, and on current predictions that means you'll start paying 20% lower rates than now.
"That price is predicted to stay around that point until the end of the year, and into early 2024."
If you lock into the deal, then you will need to pay a £150 exit fee if you want to leave early.
The fee is £75 for the electric-only tariff.
Earlier this month, the Chancellor confirmed the Energy Price Guarantee would be extended for three months from April to June at its current level.
It was originally going to rise to £3,000.
The Ofgem price cap is currently at £4,279 but will drop to £3,280 on April 1.
Analysts at Cornwall Insight currently predict this could fall to £2,013 in July and could go to £2,002 in October.
This would be a further £200 lower than Ovo Energy's new tariff.
Ovo has roughly 4.5million customers.
