The average annual online energy tariff has fallen below £1,000 for the first time this year, according to market analysis from uSwitch.com.

The comparison website says this is “good news” for households, who could save around £400 between the most expensive standard tariff and the cheapest online energy plan.

Scottish Power has become the latest supplier to offer an online energy plan, which costs an average £975 a year – beating the big six suppliers and pushing the average online energy plan down to £988 a year.

The move from Scottish Power comes amid a compeittive market where energy providers are being called on to cut prices and make energy more affordable for households following a drop in wholesale prices.

Will Marples, energy expert at uSwitch.com, says that consumers shouldn’t wait for the best deals to fall in their laps because providers are not cutting all of their tariffs so it is easy to miss out on valuable savings.

“Suppliers are focusing their price cuts on online energy plans – this is where all the action is taking place and where consumers should be looking if they want better value and lower energy prices,” he said.

“The message to consumers is clear – if you want to cut the cost of your energy and enjoy the cheapest prices in the market you have to move to an online energy plan.”

© Fair Investment Company Ltd