First Utility launches cheapest energy deal on the market

New fixed energy tariff from First Utility will shield you from price rises next winter.

First Utility has launched a new fixed rate energy deal, which is now the cheapest gas and electricity tariff around.

The iSave Fixed v18 will fix the price of your gas and electricity until 31st May 2015, which means you will be shielded from price prices next winter.

For a typical household using 13,500 kWh of gas and 3,200 kWh of electricity this deal will set you back around £1,013 a year. That makes it the cheapest tariff on the market today.

However, the tariff carries an exit fee of £30 per fuel if you want to switch before the deal ends.

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Why you might want to switch now

Energyhelpline reckons around 300,000 households need to review their energy deal as nine fixed rate tariffs are coming to an end in the next few weeks.

These deals have got households through two to three winters without a price rise, but as they come to an end those that don’t switch onto a new deal will be dumped onto their supplier's standard tariff, which tend to offer a worse deal.

Energyhelpline has estimated that households could face paying up to £183 more a year if they don’t take action.

Below are the details of the nine tariffs coming to an end along with the cost of a supplier's ‘go-to’ tariff measured up against the savings that could be made switching onto the cheapest deal available right now from First Utility.

Source: energyhelpline.com

All calculations are for an average usage dual fuel household paying by monthly direct debit. Average usage as defined by OFGEM is 13,500 kWh pa of gas and 3,200 kWh pa of electricity.

If you are on one of these tariffs now is a perfect time to switch as the process can take four to six weeks to complete.

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The cheapest energy deals

If you’re on the hunt for the cheapest energy deal going here are the top five tariffs available right now. You can find more deals using our comparison centre.

Source: energyhelpline.com 14/03/14

*All calculations are for an average usage dual fuel household paying by monthly direct debit. Average usage as defined by OFGEM is 13,500 kWh pa of gas and 3,200 kWh pa of electricity.

The top five cheapest energy deals available right now are all fixed tariffs and all come from independent suppliers.

Fixed rate deals shield you from price hikes but usually come at a premium, however at this time that doesn’t seem to be the case.

However, the top five deals are only short-term fixes and will only shield you from price rises for one winter before you need to think about switching again.

But there are longer fixed rate deals available.

The cheapest is the Green Star Energy No Worries 24-Month Fixed deal which costs an average £1,103 and can protect you from price hikes for two winters.

But the longest lasting fixed rate deal comes from Sainsbury’s Energy which offers to freeze prices until the end of March 2018. The Fixed Price March 2018 tariff will cost an average of £1,316 a year. This deal will protect you from price rises for four winters but you'll pay a £303 premium compared to the cheapest fix available from First Utility.

Last year all of the Big Six energy companies announced prices rises, although some scaled back the extent of these after the Government announced it would reduce green levies. Read more in Energy price rises and cuts in full.

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