First:Utility wades into energy price war

Another energy supplier has launched its bid to become the cheapest in the UK, undercutting its closest rivals by £10.

First:Utility's online plan costs an average of £889 a year, while its standard product is £1,074.

This makes it cheaper than British Gas for both packages, although customers are advised that they will have to pay monthly by direct debit for the online plan.

Emma Bush, Energy Expert at uSwitch.com, commented: "Suppliers have consistently offered their most competitive prices online.

"Online plans are around £300 a year cheaper than standard plans, but only 5% or 1.3 million households are on one."

She added that if First:Utility can prove its weight, it could be a major player in the energy market.

In recent days, uSwitch.com suggested that in light of British Gas releasing record year-on-year profits, energy suppliers may be encouraged to lower the cost of their price plans.

Posted by Ruth Bradshaw