First Utility’s new energy tariffs make it the cheapest energy supplier for dual fuel energy – but what are the other cheap options? We reveal the three cheapest variable and fixed energy deals available.
Energy supplier First Utility has launched two new gas and electricity tariffs, the iSave v12 and the iSave Fixed v4 March 2014, which undercut all other energy tariffs.
As fears about rising energy bills grow in the run up to winter, now is a good time to check that you are on the best deal. You can compare gas and electricity prices using the Which? Switch energy tariff calculator or call Which? Switch on 01992 822 867.
Cheap variable energy deals
First Utility’s iSave v12 tariff is a variable deal (i.e. the prices are not fixed) which costs £1,054 per year for an average household. The two next cheapest deals available are the Sainsbury’s Online Variable September 2013 tariff which costs £1,070 a year and Npower’s Energy Online which works out at £1,071.
You’ll need to be quick if you want to switch – the energy market has seen a lot of change in the past month with Scottish and Southern Energy (SSE) and EDF Energy both pulling their cheapest deals from the market. First Utility also withdrew its cheapest iSave Fixed v3 plan earlier this month, which cost £1,040 on average per year.
Cheap fixed energy deals
With SSE announcing price rises of 9% in October, other suppliers might follow. So now is a good time to switch. If you want the security of fixed energy prices, go for a fixed deal. First Utility’s new fixed deal is the cheapest available but the savings aren’t massive compared to the next cheapest fixes.
The annual bill for an average household is £1,087 on the First Utility iSave Fixed v4 March 2014 (which is fixed until 31st March 2014). This is only £1 less per year than Ovo’s New Energy Fixed deal which is the second cheapest on the market (and fixed for 12 months). The third cheapest plan is Scottish Power’s Online Fixed Price March 2014, which costs £1,099 per year on average.
The iSave Fixed v4 has a £60 cancellation fee if you want to leave before the end of the fixed period. Ovo’s New Energy Fixed plan also charges an exit fee of £30 per fuel. However customers are free to leave the Scottish Power tariff at any time without incurring a penalty charge.
Energy suppliers rated
If you are thinking of switching to one of these new deals, it’s worth considering that First Utility was ranked 11th out of 14 energy companies in our energy companies satisfaction survey. First Utility got a low customer score of 46% compared to the highest ranked company Good Energy which scored 84%. Ovo Energy’s customer score was 76% but Scottish Power scored just 44%.
- Get to grips with energy tariffs in our guide to energy tariffs explained
- Get advice on how to cut energy costs in your home
- Help Which? tackle unfair energy tariffs by signing up to our affordable energy campaign