First Utility announces 3.5% price hike
The independent supplier had not raised its gas and electricity prices over the winter period
First Utility has today announced that it will be raising prices for customers on its iSave Everyday tariff by 3.5%. The latter is the small supplier’s variable energy plan.
The independent supplier has kept its promise of not increasing prices during the winter and will be implementing changes as of the 1 April 2014.
According to First Utility’s press release just 40% of its customers (those on a variable contract) will be affected by the increase.
First Utility customers affected by the price hike will be charged an additional £3.26 per month on average (based on Ofgem’s average consumption figures).
‘Credit should be given for the fact that it has held off from raising its prices for longer than big six’
Tom Lyon, energy expert at uSwitch, said: “Unfortunately this is no April Fool’s joke – from the 1st April First Utility’s customers will have to pay almost £40 a year extra for their energy supply. However, credit should be given for the fact that it has held off from raising its prices for longer than its big six competitors and has waited until the end of winter before pushing this increase through.
“With over seven in ten households (73%) going without heating at some point this winter to keep energy bills under control, this price protection will have been appreciated. It has never been more crucial that consumers take time to make sure they are paying as little as possible for their energy.
“With £274 between the cheapest and the most expensive tariffs on the market, and many low-cost fixed price tariffs available, there is much to gain from getting a whole-of-market comparison based on your own circumstances. Switching to a better deal today could see you protected from price hikes for anything up to four more winters.”
‘Unfortunately we’re in an industry where costs are continuing to rise’
CEO of First Utility Ian McCaig, commented: “Our mantra is to help consumers minimise their energy spend by offering lower tariffs and campaigning for change in the industry to reduce costs and put more power in the hands of the consumer.
“Unfortunately we’re in an industry where costs are continuing to rise – driven by investments in infrastructure, policy costs and a gradual increase in wholesale costs.
“However, we’ve held off making any increases during the winter when usage and therefore bills are at their highest and we have absorbed increasing costs as much as we can – that’s why our increase is lower than the big six.”