An electricity price war could be on the cards after Yuno Energy this morning slashed its prices by 12%.

The company said the change, which comes in immediately, means customers could save €355 per year.

The utility, which is a subsidiary of Prepay Power, entered the Irish market back in August.

It was the first new supplier to enter the Irish residential energy market in over three years.

The new unit rate for electricity from Yuno is 33.66 cent per kWh - down from 38.05 cent per kWh.

It is likely other electricity firms may also cut prices in order to compete.

Yuno CEO Cathal Fay said the change is good news for consumers.

"The new rate will be particularly attractive to customers who haven’t switched energy provider in over a year," he said.

"There is now real value to be had from switching and Yuno is leading the way in this regard," he added.

Figures from the summer showed electricity prices in Ireland were the highest in the EU at around 80% above average.