First Utility makes 11th energy price cut in a year

Independent energy supplier First Utility has cut its energy prices for the eleventh time in a year, having reduced prices by 13 per cent overall in that time.

The company has cut its First Fixed March 2017 v4 tariff by 2.2 per cent to £805.80 for a dual fuel household with typical usage, and has locked in prices until March 2017.

It claims this represents an average saving of £310 for big six customers who are on one of the standard variable tariffs, and is available to new and existing customers who are renewing their fixed-term contracts.

First Utility UK managing director Ed Kamm said: “The biggest problem in this industry is that 70 per cent of the big six customers are on a standard variable tariff.

“For these customers a reduction in the variable tariff still leaves more than £300 difference to the cheapest tariffs on the market, but the level of disengagement that exists in the industry means they’re not necessarily benefitting.

“Our focus is on delivering consistently low prices for customers through competitive fixed tariffs, keeping customers engaged and encouraging them to pick the best fixed deal for them. That’s why we’re pleased to announce our eleventh price cut in the last year.”

This follows a 5.1 per cent price cut by big six supplier Eon yesterday, after mounting pressure to reduce tariffs in the wake of falling wholesale costs, with the boss of Ofgem joining calls for price cuts last week. A report by market analysts Icis found wholesale gas prices fell by 34 per cent last year and look likely to continue falling in 2016.