First Utility raises energy prices by 19%iSave V12 tariff to be scrapped
25 April 2013
Customers on First Utility’s iSave V12 tariff will see their bills rise by an average of 19% from 1 June. The rise will affect approximately 18% of First Utility’s customers.
First Utility’s price rise is unusually high at 19%. It comes months after the big six energy suppliers (British Gas, EDF, Eon, Npower, SSE and Scottish Power) increased their prices by an average of 7-10%.
If your energy bills have increased, visit Which? Switch to see if you could save by switching.
First Utility customers to move tariffs
When the iSave v12 tariff ends on 1 June, customers will be moved across to the iSave Everyday tariff. This tariff is covered by the company's price promise, which guarantees to be cheaper than the standard tariffs of the big six suppliers.
A spokesperson for First Utility said: 'We are simplifying our tariff structure and customers that were notified will be migrated to our iSave Everyday tariff or another tariff of their choice. There will be no penalty for moving tariff or switching supplier.'
Darren Braham, founder and chief financial officer of First Utility, said: 'Although First Utility has been subject to the same challenging cost increases as other energy suppliers, we chose to delay changing our prices for as long as possible and until customers were through the coldest winter months, whereas the big six all announced price rises by the end of 2012 during a period when heating your home costs you the most.'
Energy prices a key concern
The increased prices will be a blow for First Utility customers but rising energy prices is a problem consumers as a whole are facing.
A Which? spokesperson said: 'Rising energy prices are one of consumers' top financial worries - coupled with a collapse in trust in suppliers, it's no wonder people are left questioning whether the price they are paying is a fair one.
'The government's energy tariff reforms need to go further to increase competition so consumers can be confident they're getting a good deal. We want the switching process to be quicker and for energy prices to be set out in a way that allows people to spot the cheapest deal at a glance.'
Energy price increases - know your rights
If your energy supplier increases its prices part way through a variable-rate, fixed-term contract, you are entitled to change supplier without paying exit fees.
To make sure you don’t pay charges you don't have to, see our guide to your rights when your energy supplier raises its prices.