First Utility hikes prices by 18.6%

First Utility has announced the biggest price rise of any energy provider yet.

Energy provider First Utility has announced it is pushing up the price of its gas and electricity for some customers by 18.6% from 1st June.

This price rise is far higher than any implemented by the ‘big six’ providers towards the end of last year and will be an unwelcome shock to many.

It will be especially frustrating for those who have recently switched to First Utility to get a cheaper deal.

Price hikes

Last year all the major energy suppliers announced price increases which have all now come into force.  British Gas, for example, pushed up prices by 6% whereas EDF increased its prices by 10.8%.

First Utility has now announced it is scrapping its iSave v12 tariff, meaning customers will have to switch onto a more expensive tariff, such as the iSave Everyday or the iSave v15, if they wish to stay with the company.

The exact price rise for customers will depend on how much energy they already use. The 18.6% will add an average of £264 onto annual bills.

Although the rise from First Utility is higher than increases from other providers, it says it still offers a cheaper tariff than any standard tariff with a big six provider. But when looking at the deals in the tables below, many are cheaper so therefore it may be worth switching if you want to save money.

Darren Braham, founder of First Utility, said although the company has been subject to the same challenging cost increases as other suppliers, it chose to delay changing prices for as long as possible and until customers were through the coldest winter months.

"The network costs, the increasing price of wholesale energy and the social and environmental obligations mandated by the government have meant that we regretfully need to increase our prices," he added. 

How to change suppliers

If you’re not happy sticking with First Utility after the price hike, you’ll need to tell it within 20 days of receiving notification about the price change. Following this your new supplier then has 15 days to tell First Utility it is taking over your energy supply and the switch will take place.

There will be no penalty for switching.

Switching energy companies is easy and relatively stress-free although it’s something we’re not that keen on doing. But on average most people can save around £300 when they switch so it’s well worth doing.

Our comparison tables show a whole view of the market but below you can see the top five cheapest deals, both for fixed and variable tariffs.

The cheapest variable-rate tariffs

* Saving calculated against an average bill as declared by OFGEM in winter 2013 (£1,420). All calculations are for an average usage dual fuel household paying by monthly direct debit. Average usage as defined by OFGEM is 16,500 kWh pa of gas and 3,300 kWh pa of electricity.  Source: Energyhelpline.com

The cheapest fixed-rate tariffs

* Saving calculated against an average bill as declared by OFGEM in winter 2013 (£1,420). All calculations are for an average usage dual fuel household paying by monthly direct debit. Average usage as defined by OFGEM is 16,500 kWh pa of gas and 3,300 kWh pa of electricity.  Source: Energyhelpline.com

Are you a First Utility customer? Will you be switching companies to avoid the rise?

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