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Further energy firm price promise announced

16 Apr 2014

Last week saw the first small energy firm offer a yearly cost of less than £1,000. This may have been the first step in a price war.

Ovo launched their Cheaper Energy Fixed Tariff at £998 per year. First Utility is now following suit with a £994 option, based on watchdog Ofgem’s average medium consumption data. The tariff is called iSave Fixed July 2015.

It is estimated that households could save up to £200 per year through judicious switching of their energy firms. The ‘big six’ firms offer an average price of £1,264 per year.

Chief Customer Officer at First Utility, Ed Kamm, said: ‘It will be interesting to see if the larger suppliers choose to get involved’. The firm now has almost 400,000 in the UK.

Energy prices are under scrutiny lately due to Ofgem’s proposed investigation into profiteering among the ‘big six’. These energy firms insist their prices are a true reflection of cost and have warned that the UK’s energy supply could be affected if investment wavers in the wake of an investigation.