Price war: First Utility follows in Ovo’s footsteps with the launch of the lowest tariff on the market
First Utility is the latest energy supplier to offer consumers a tariff below £1,000; its iSave Fixed July 2015 (v20) plan is now the cheapest on the market at £994
Laying down the gauntlet: Ovo announced the launch of its own tariff below £1,000 last week, at £998 a year, as small suppliers challenge the big six
Shopping around: Research from Uswitch.com shows that almost three quarters of consumers (72%) would now switch to a small supplier – up from 56% last year and 52% in 2012.
First Utility has become the latest energy supplier to announce the launch of a tariff below £1,000. Its iSave Fixed July 2015 (v20) plan is now the cheapest on the market at £994, and follows hot on the heels of Ovo’s Cheaper Energy Fixed plan at £998 a year, launched last week. As small providers pave the way for a price war amongst energy suppliers, research from Uswitch.com, the independent price comparison and switching service, shows that almost three quarters of consumers (72%) would now switch to a supplier outside of the big six – up from 56% last year and 52% in 2012.
Tom Lyon, energy expert at Uswitch.com, says: “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.
“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.”
FOR MORE INFORMATION
Ailene Barr
Phone: 020 3872 5610
Email: ailene.barr@uswitch.com
Twitter: @uswitchPR
Notes to editors
Research referred to below was conducted by YouGov 3rd – 6th February 2014 amongst 2,232 adults with decision-making involvement with energy suppliers. The data is weighted.
In response to: ‘Would you consider switching to a smaller energy supplier outside of the big six (British Gas, EDF Energy, E.ON, npower, ScottishPower and SSE)?’ 72% made up of 11% who have already done so and 61% who would consider it.
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