First Utility is the latest energy supplier to hike its standard variable tariff – with a 5.9% increase set to hit on Monday 23 July, adding £67 a year to a typical household bill.
The supplier has around 825,000 customers, with about 20% on its standard variable tariff – so the price rise will hit around 165,000 people.
The move follows other price increases across the energy market, with both Bulb and Utility Warehouse hiking prices just this week. All of the big six have also increased the cost of their standard variable tariffs in recent months – with SSE the last of the giants to announce a hike in May.
Small supplier Bristol Energy also announced today that it is to increase the price of its standard tariff by 9% from Saturday 9 September. However, according to the supplier, only 16% of its approximately 80,000 customers will be affected.
If you’re affected by these price rises, you’re likely already overpaying for your gas and electricity. Check if you can switch and save £100s/year with our free Cheap Energy Club.
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I am a First Utility customer – how am I affected?
The First Utility price rise only affects you if you’re on its standard variable tariff.
A typical dual-fuel household will see its bills rise by 5.9% from £1,132/year to £1,199/year – an increase of £67/year on the typical annual bill.
These figures are based on typical annual consumption of 3,100kWh electricity and 12,000kWh gas.
How can I beat the hike?
If you’re on its standard variable tariff, you can switch away from it without paying any exit fees.
There are much cheaper deals on the market. The cheapest, a variable deal from small supplier Outfox the Market, is £807/year based on typical use – around £390/year cheaper than First Utility’s standard tariff after the hike comes into effect. Find the best deal for you by doing a full market comparison on our free Cheap Energy Club.
If you want to stick with First Utility, it has cheaper deals. Its Smart First August 2019 Online tariff costs an average £1,007/yr for dual fuel based on typical usage – over £190/yr less than its standard tariff will be from Monday 23 July, though you’ll need to agree to get smart meters to get this deal. You can search the cheapest deals with your current supplier on Cheap Energy Club.
What does Utility Warehouse say about the price rises?
Ed Kamm, its Chief Commercial Officer, said: “Weve always stood for fair and responsible pricing. That means passing on savings to customers when costs drop, but it also unfortunately means we need to increase prices when our costs rise.
“Weve seen external costs increase by 9% over the past 12 months and while we have absorbed much of these we regrettably need to change the price of our variable tariff as a result. The vast majority of our customers will not be affected.”