The energy price war heats up as smaller companies wage a war against the ‘Big Six’.

Phoenix Supply – based in Northern Ireland – has confirmed a 19% reduction in its gas tariffs, effective from 1 October 2009 – committing to a promise it made earlier this year.

The latest price cut is the second in nine months and is unprecedented in Northern Ireland. It brings the total drop this year to 36.9% or a reduction of £258 from the average annual domestic bill.

Announcing the price cuts, David Strahan, General Manager of Phoenix Supply, commented: “We made a commitment to our customers in January that should the wholesale cost of gas continue to fall we would, once again, reduce prices accordingly.

“This is a promise we have kept, and we are delighted that Phoenix is the first major UK gas supplier to be able to announce two substantial price reductions this year.”

Independent energy supplier first:utility also announced this week that it has launched a new dual fuel iSave deal, which it claims undercuts every other UK energy tariff and offers customer savings of up to 14.5%, compared to competitors such as British Gas.

Mark Daeche, Chief Executive of first:utility, said: “Our goal is to provide consumers with a real alternative to the ‘Big Six’ energy players today.”

Will Marples, Energy Expert at uSwitch.com, commented on the deal: “This is the first time that a ‘challenger’ energy provider has gone head-to-head with major suppliers on price and beaten them. It’s good news for those consumers who have been looking for a viable alternative to the ‘Big Six’, but who are concerned about paying more for their energy as a result.”

The iSave tariff is only available online however, and customers are encouraged to register for the deal through one of the online switching websites.