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First:utility emerges as cheapest energy supplier

iSave dual fuel tariff is cheapest in the UK


Gas prices have risen by 33.8% in the last 12 months

Energy company First:utility has launched an online dual fuel tariff that makes it the cheapest energy supplier in the UK.

The iSave online tariff is now the cheapest gas and electricity deal on the market for the average household paying by direct debit, trouncing the prices offered by energy giants British Gas, Eon, Npower, Scottish & Southern Energy, Scottish Power and EDF Energy.

The surprise move comes two weeks after another smaller energy company, Ovo Energy, launched its competitive New Energy tariff and may put pressure on the larger energy companies to respond.

According to Alison Morrison of Which? Switch, Which?’s energy comparison and switching service: ‘It’s unusual not to see one of the ‘Big 6′ hold the title of cheapest energy supplier, and it will be interesting to see if this pressures them to further lower their prices.’

iSave tariff

The iSave tariff from First:utility is an online dual fuel plan, meaning you must take both gas and electricity, and is payable by monthly direct debit. There’s no minimum contract, and unlike some other energy tariffs, there’s no cancellation charge either.

The tariff includes an annual 12.5% dual fuel discount, which you receive after making a year’s worth of direct debit payments. 

An extra £20 discount is also available for customers who submit quarterly meter readings. Customers earn a credit of £5 for taking at least one gas and one electricity reading a quarter, which is then discounted after 12 months.

The iSave tariff isn’t available to prepayment meter customers, existing customers or people living in the Midlands or East Midlands area. 

Which? Switch

Which? Switch can help take the hassle out of changing energy supplier. Compare prices and tariffs – including First:utility’s iSave tariff – in a few minutes to find the best deal for you. Those switching with Which? Switch between August and December 2008 saved an annual average of £257.

We’ve also got practical tips on how to cut your energy costs and how to create an energy efficient home.

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