First Utility has announced a new energy deal that is the cheapest on the market.
The iSave Fixed V3 dual fuel deal has replaced Scottish Power’s Energy Fixed November 2013 which was launched just two weeks ago, at the top of the best buy table.
The new product from First Utility is fixed until the 31st December 2013 and will cost an average of £1,040 a year based on normal consumption and for customers who pay by direct debit.
Ann Robinson, Director of Consumer Policy at uSwitch.com, says: “The launch of the cheapest and longest fixed plan on the market from First Utility is great news for consumers. Just two weeks after Scottish Power came out with the lowest fixed price deal, the battle for competitive plans is really hotting up.
The estimated cost is based on a household that uses 3,300kwh of electricity and 16,500 kwh of gas annually.
First Utility says that the new tariff widens the gap between the cheapest and most expensive tariffs to more than £300 a year.
The price of wholesale gas has fallen recently and consumer groups are urging the “big six” energy companies, British Gas, npower, EDF Energy, SSE and Scottish Power and E.ON to follow suit and cut prices as quickly as they raise them when wholesale prices go up.
Last week British Gas announced a 23 per cent increase in profits on its business serving more than 15 million UK residential households. Consumer groups have urged the company to cut its prices.
Ann Robinson added: “We have seen signs recently that there could be a light at the end of the tunnel for those households struggling with their energy bills.
"As well as Good Energy’s price cut yesterday and the introduction of the cheapest plan by First Utility we have continued to see falling wholesale prices. We urge the Big Six to follow the smaller suppliers’ lead in offering lower energy tariffs to their customers, and to do it sooner rather than later.”
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