Independent energy supplier First Utility has launched the UK’s cheapest energy tariff with no fixed term contract. However, customers can get better deals if they are prepared to be tied in.
The new tariff, called iSave v16, is an online-only deal costing £1,155 a year for the average gas and electricity customer.
As this is a variable deal, you’re not locked into a contract and there will be no cancellation charges, making it the cheapest variable deal.
As prices vary depending on energy use and region, it’s always worth checking you’re on the right tariff for you, so visit our free switching service, Which? Switch, to find out what’s cheapest for you.
Cheapest energy deal?
Variable deals are good for flexibility but don’t always offer the best value as they tend to be more expensive and the price could rise at anytime.
Which? has found a fixed product, which means you’re protected against price rises, making it a better deal on average if customers don’t mind being tied in until next autumn.
The Thames tariff from Flow Energy costs £1,129.32 for the average customer and lasts until September 2014 – by which time the iSave v16 product may also have risen in price. Cancellation charges for the fixed deal however are £30 for each type of fuel if you cancel before August 31 2014.
Simple energy tariffs
Which? believes radical action is required to increase competition in the energy market and simplify tariffs. In a recent investigation we found that only one in 10 people could identify the cheapest energy deal from a selection of standard tariffs. But when these tariffs were presented in a simpler form, the number shot up to nine.
Join our Affordable Energy Campaign to help us encourage the government to introduce a single unit price for energy that would apply to all tariffs and allow people to spot the cheapest deal at a glance.