First Utility customers will be hit with a 3.5% or £39 price rise from the 1st April. Those on its standard iSave Everyday tariff, paying by monthly direct debit will see their prices rise from £1,124 to £1,163 a year.
Despite the rise, the small supplier still remains competitive as the tariff comes with the First Utility Price Promise, guaranteeing that it is cheaper than the big six standard tariffs. Those on the plan paying by monthly direct debit will pay £29 a year less than those on an equivalent big six tariff. However, it doesn’t compare so favourably against some smaller players. The iSave Everyday tariff is now £138 more expensive than the cheapest tariff on the market, Spark Energy’s Direct Debit Advance 3 at £1,025 a year.
First Utility has also given customers some respite by holding off from raising prices until Spring, when energy consumption typically starts to fall. This means it has protected customers through the expensive winter months. In addition, customers who choose to pay by cash or cheque will also be pleased to hear that this will only cost them £2 a month more than paying by direct debit – this adds just £24 a year to their bills if they prefer not to move to direct debit.
Tom Lyon, energy expert at Uswitch.com, says: “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.”
FOR MORE INFORMATION
Alexa Wheeler
Phone: 0207 1484 661
Email: alexa.wheeler@uswitch.com
Twitter: @uswitchPR
Notes to editors
Announcement made on 13th February 2014
Difference of £29 between the average big six tariff paying by monthly direct debit at £1,192 a year and First Utility’s iSave Everyday tariff now at £1,163 a year
Difference of £138 between First Utility’s iSave Everyday tariff at £1,163 a year and Spark Energy’s Direct Debit Advance 3 at £1,025 a year
Research was conducted with the Uswitch.com Consumer Opinion Panel amongst 1,021 respondents in January 2014. In response to: ‘Have you gone without heating this winter to keep your energy costs down?’ 50% said ‘occasionally’, 20% said ‘regularly’, 3% said ‘always’. This adds up to 73% who went without heating at some point this winter.
Difference of £274 between npower’s standard tariff at £1,299 a year and Spark Energy’s Direct Debit Advance 3 at £1,025 a year
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