While the big six suppliers slug it out to offer consumers the best fixed price energy deals, small supplier First Utility has leapt forward by offering its customers a price freeze. The pledge, to freeze standing charges and unit rates for the winter, runs out 20th March, 2014 and lays the gauntlet down to other suppliers who have been warning of price hikes.
The move sees First Utility now offering existing customers on variable plans a price freeze and new customers the choice of the cheapest fixed rate tariff on the market or the cheapest variable tariff for those paying by direct debit in arrears. It is another example of what consumers could expect to see if the energy market was truly competitive, says Uswitch.com
Ann Robinson, Director of Consumer Policy at Uswitch.com, says: “First Utility is a small supplier, but making some big waves in the market. While the big six appear to be squaring up for price hikes, this relative newcomer is throwing down a gauntlet by declaring a price freeze.
“Whether First Utility’s stance will be enough to stop the big six in their tracks remains to be seen – will it be enough to raise some important questions and make larger rivals stay their hand for just a short while more?
“However, while the move is good news, the impact is fairly limited as the big six still account for around 98% of domestic customers. While applauding First Utility’s stance I would still urge all consumers to look to protect themselves, as there are some highly competitive fixed price tariffs on the market that will guarantee prices up to March 2017.”
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