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Budget Energy has become the first of the Northern Ireland power companies to announce a price reduction.

It will reduce all current domestic tariffs by 5% from 10 March, giving a typical customer a £32 annual saving.

With 60,000 customers, Budget is the smallest of the electricity companies and represents about 5% of the market.

Energy companies have been under pressure to act on prices because wholesale costs have fallen, particularly the cost of oil.

A company spokesperson said: "Budget Energy is pleased to announce that due to recent cost savings in the business, we are happy to pass on savings to our existing and new domestic customer customers."

The Londonderry-based firm was established in 2011. It has customers across Northern Ireland in an electricity market dominated by Power NI.

Aodhan O'Donnell, interim chief executive of the Consumer Council, said: "We had recently written to all electricity companies asking them to review their prices on the back of wholesale energy price reductions.

"Budget Energy's 60,000 customers will welcome their decision to reduce all current domestic tariffs by 5%."

In January, Northern Ireland's Utility Regulator said it was reviewing gas and electricity tariffs in light of the steep fall in wholesale gas prices.

However, Budget Energy's decision is not part of the tariff review as the firm is not price regulated by the regulator.