First Utility launches new cheapest energy tariff in the UK

Battle for top position driving prices down.

Small energy supplier First Utility launched a new range of cheap tariffs, jumping back to the top of the best buy tables.

The move snatches prime position away from ‘Big Six’ supplier E.ON, which this week announced a gas price cut.

First Utility says it’s passing on savings following a drop in wholesale prices.

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The new range

There are two new First Utility tariffs to pick from.

The iSave Fixed March 2016 v44 will fix bills this winter and the next and will cost a dual fuel household with medium consumption paying by monthly direct debit £919 a year.

While the iSave Fixed March 2018 v43 will fix energy bills for over three years and will cost a dual fuel household with typical usage paying by monthly direct debit £1,081 a year.

Both tariffs are available to new and existing customers, come with a £30 per fuel exit fee and are available on a duel fuel or electricity only basis.

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The cheapest energy tariffs

The table below shows how the new tariffs from First Utility stack up.

Source: lovemoney gas & electricity comparison centre.

Prices based on average consumption as measured by Ofgem of 13,500kWh of gas and 3,200 kWh of electricity and a customer paying by monthly direct debit including VAT.

*Not available in region 17- Scottish Hydro area

N.B Prices are the average for the whole of the UK. Actual costs vary by region.

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Passing on savings

Wholesale gas prices are down 30% compared to this time last year.

Smaller energy suppliers like First Utility have been quick to pass on the savings from the drop. But the Big Six suppliers (made up of British Gas, SSE, EDF, E.ON, npower and Scottish Power) have not been so keen.

E.ON is the only one to have made a move so far, cutting gas prices by an average of 3.5% for those on its standard tariff and launching what was the UK’s cheapest tariff earlier this week.

It is hoped the rest of the big players will follow E.ON’s lead.

You can keep up to date on the latest changes to the best buys with The cheapest gas and electricity tariffs.

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