Energy giant Ovo has launched its first deal for customers that are cheaper than the government s cap on household bills.
The firm will offer a fixed 12 month tariff of 2,275 for existing customers, at a time when the government is limiting typical household bills to 2,500.
It comes as wholesale gas prices start to fall, causing bills to come to an end.
One expert urged caution on Ovo's deal, as he predicted there would be cheaper deals in the months to come.
Because of the low wholesale rates, it is likely that the price cap will drop, and on current predictions that means you'll be paying 20% less than now, according to MoneySavingExpert.com, which provides power to more than four million homes. The price is predicted to stay around that point until the end of the year, and into early 2024. Experts predict that household bills will fall this summer as suppliers strike new long-term deals to buy cheaper gas.
They said that the government's Energy Price Guarantee EPG which is being held at current levels until the end of June will no longer be needed.
Last month analysts at Cornwall Insight predicted that Ofgem's energy price cap which in normal times limits what suppliers can charge per unit of energy will fall to 2,153 a year from July.
Analysts at financial firm Investec said earlier this week that the cap could go as low as 1,981 a year from July, but it would still be much higher than before Russia's invasion of Ukraine.
At this point, experts believe households might be able to shop around for more competitive energy deals.