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Eon has cut the price of its new dual fuel fixed tariff by £14, undercutting rivals SSE and Extra Energy.

The one-year dual fuel fixed energy tariff, launched to coincide with Eon’s 5.1 per cent price cut, is now £769 per year – the cheapest in Britain since March 2011.

It is available to new and existing customers who pay a fixed monthly direct debit.

Comparison site Uswitch has labelled the price cuts a “battle for the top spot” and energy expert Tom Lyon said: “It looks as though a winter price war is well underway as suppliers battle it out to rule the roost in the best buy tables. But, while the price of fixed deals is plunging, the cost of standard tariffs continues to fall like a feather.”

Energy expert at Money Supermarket, Stephen Murray, said: “Eon has made a very clear move in response to falling wholesale prices and consumer outcry to cut household costs, and this will hopefully force the other big six players to cut standard prices for both gas and electricity.”