Energy News

First:utility undercuts E.ON to become cheapest energy supplier

Friday 2 October, 2009

By Becca Talbot - becca@consumerchoices.co.uk

First:utility has surprised the market by undercutting E.ON to become cheapest supplier, just hours after the energy giant cut its gas and electricity prices.

Independent energy supplier First:utility (www.first-utility.com) is now the UK’s cheapest dual fuel energy supplier, following a price cut.

First:utility has cut the prices of its iSave and Smart tariffs within hours of E.ON (www.eonenergy.com) cutting the prices of its FixOnline V3 tariff.

Mark Daeche, chief executive of First:utility, said: “Today sees the second price cut from First:utility in three weeks. It demonstrates our commitment to UK consumers and to maintaining our position as the challenger in the UK energy marketplace.”

The move makes First:utility the cheapest dual fuel supplier in all 14 of the UK’s energy distribution areas.

Daeche added: “As an independent energy company we are able to be more nimble and react more rapidly to market conditions than the established players.”

First:utility’s iSave tariff - available everywhere except the East and West Midlands areas - is the cheapest gas and electricity online-only deal. It costs the “average” energy user £954 a year. This is a price difference of about £8 when compared to the second cheapest deal from E.ON.

For customers in the East and West Midlands, First:utility is also the cheapest supplier with its Smart tariff. The “average” customers’ annual dual fuel bill on the reduced Smart tariff is now £944, and customers will get a free smart meter to help them control their energy usage.

First:utility has said it will guarantee these iSave and Smart tariff energy prices for a minimum of three months.