First Utility strikes back with cheapest energy plan on the market – Updated
The small supplier has responded to Ovo Energy’s recent price cut
First Utility’s new plan, iSave Fixed July 2015, will enable customers to fix their energy rates until next summer and will set back the average household* by £994 per year. The plan includes £30 per fuel exit fees.
The new plan is £4 per year cheaper than Ovo Energy’s Cheaper Energy Fixed tariff.
‘Welcome news’ for consumers
Tom Lyon, Energy Expert at uSwitch, said: “Spring has sprung for consumers following a winter of discontent. The dominance of the big six has been well and truly challenged by First Utility, as it becomes the second small supplier in a week to offer consumers a better deal.
“This can only be welcome news; as competition heats up in the battle for hearts and minds suppliers will have no choice but to offer superior service, lower prices and better value for customers.”
Start of an energy price war?
“The latest plans from both First Utility and Ovo will offer households welcome relief, with the high cost of energy threatening to push many of them to their financial tipping point over recent years. This could well be the start of a price war amongst suppliers, and it is excellent to see some of the smallest leading the charge.
“Alongside these new deals, it is essential that consumers are supported by an education programme in order to help them understand all the choices available on the market. By increasing confidence in lesser-known names, this will help consumers to see that they have a real choice in front of them,” added Lyon.
‘There is active competition within the market’
Chief Customer Officer of First Utility Ed Kamm, said: “We are delighted to announce that we are offering fantastic value one, two and three year fixed price tariffs, giving consumers peace of mind for the short, medium and longer term. Our entire proposition is based around a genuine commitment to help UK consumers save money on their energy bills so we always look at ways to offer the best prices possible.”
“The activity at the top of the price comparison table shows that there is active competition within the market – something we have been actively encouraging – and it will be interesting to see if the larger suppliers choose to get involved.”
* Based on a medium usage customer using 3,200 kWh of electricity and 13,500 kWh of gas paying by direct debit (Spark requires this in advance) with bill sizes averaged across all regions.