Octopus Energy will be cutting bills by in April just as the new price cap hits.
The renewable gas company have been in touch with all of their customers to tell them they are introducing £48 saving.
This comes as millions worry about being able to make ends meet with the price increase of energy.
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They emailed customers warning them that bills rise-but "lower than any other big supplier".
As of yesterday, March 9, Octopus Energy said they are introducing a temporary Loyal Octopus support to help customers keep bills as low as possible. This will come into effect on April 2.
They said: "The reward automatically reduces electricity charges by £48 per year compared to our standard tariff (that's £50 below the price cap).
"We're the only large energy company to do anything like this. It'll cost us another £50 million over the next six months.
"We've never made a profit and won't do now, but we've received major investments and are more efficient than other companies.
"We are using this to do everything we can to help out existing customers through the crisis."
Come April, Ofgem's energy price cap will rise to 54 per cent with the average household annual bill hitting £1,971.
For customers with Octopus this will rise to £1,921 for existing customers, with new customers getting a reduction of £2 on the price cap at £1,969.
For those who are struggling to pay their bills, the British energy firm have said they are doubling their hardship fund to £5 million.
Along with with the price cap rebate Octopus says it is providing £50million in support of its customers.
Greg Jackson, founder of Octopus Energy Group, said: "We’re gutted to be increasing prices like this, but with the cost of energy being up to five times higher than last year it’s absolutely unavoidable.
"We’ve already absorbed £100 million of the costs on behalf of customers, and we’re choosing to absorb another £50 million here by keeping costs for existing flexible tariff customers well below the cap - and much lower than any other large company."
The firm will be in touch with their customers to inform them of their individual prices in the coming days and weeks.
After the collapse of over 40 energy companies, Octopus became the fourth biggest provider and took over half a million new customers last year.
Octopus is the UK's fourth biggest energy provider and took on over half a million customers as large numbers of firms left the market last year.
The UK is heading into a living cost crisis as energy bills continue to sky rocket, as does oil, fuel and Bank of England warn that inflation is expected to hit seven per cent in April.
