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First Utility has just announced a new tariff which snags the top position of the cheapest tariff on the market today.
The tariff, called iSave fixed July 2015, gives customers fixed-price gas and electricity until July 2015 and is calculated to cost just £994 a year. The extra good news is that it is also available to both new and existing customers, no matter how long they may have been with First Utility already.
The iSave fixed tariff has swooped in to claim the top spot of cheapest tariff from rival energy company OVO Energy, which recently launched its own m0ney-saving deal that cost on average just £998 a year. Experts believe that this could be the start of a competitive price war as independent energy providers seize a gaping opportunity in the market and strive to beat the Big Six energy companies on price.
Clare Francis from MoneySupermarket said that the consumer website is expecting to see a lot of activity over the next few weeks, as many fixed rate tariffs are scheduled to expire. This means that customers will be scurrying to find the best new deals on the market and companies besides First Utility and OVO will be revealing their most enticing deals.
Indeed, many customers are already beginning to see the benefits that switching to a lesser-known, independent or green energy provider could bring, as the spotlight on the Big Six becomes less and less favourable. Recent research from price comparison website uSwitch showed that three quarters of customers will consider switching to a supplier outside of the Big Six. This was up from 56% in 2013 and 52% in 2012.
As well as saving hundreds of pounds a year through cheaper tariff rates, choosing smaller, independent suppliers could also bring relief from poor service and customer support that have caused years of discontent for customers.
Together, the Big Six energy providers account for 95% of the current energy market. Meanwhile, First Utility accounts for just 1% of the market, showing a striking difference in the dominance and stronghold of independent providers.
First Utility’s iSave fixed tariff provides the option to pay by regular direct debit every month, as well as the ability to manage one’s account and submit meter readings online. New or existing customers can get an immediate quote for their household by visiting the First Utility website tariff page or by calling the First Utility phone number.
With the iSave fixed tariff, even the exit rate is low. Customers will need to pay a fee of just £30 (for each utility) if they wish to opt out of their contract before the year is up.