First Utility comes back onto the market with a bang

Small supplier, First Utility, has come back onto the energy market with a bang, launching two new market-leading energy deals.

The move is good news for consumers who were facing a dwindling range of options, even as many were scrabbling to secure a good deal after SSE announced a price hike, says uSwitch.com, the independent price comparison and switching service.

From today, First Utility will be the cheapest overall supplier with its iSave v12 plan, costing £1,054 a year on average. At the same time it will also be the cheapest for a fixed price plan, with its new iSave Fixed v4 March 2014, costing £1,087 a year. This makes it £12 a year cheaper than the popular ScottishPower Online Energy Fixed March 2014 plan at £1,099 a year. However, unlike the ScottishPower plan, First Utility's carries exit penalties of £30 per fuel.

Tom Lyon, energy expert at uSwitch.com, says: "First Utility is turning into the ‘come back kid' of the energy market. Its return today with two market-leading offers is something of a reprieve for consumers. However, there is still an underlying urgency - the fact is that  consumers who want to fix their energy prices cannot afford to hang around. The cost of fixed price plans is creeping upwards and exit penalties are creeping back in. And while First Utility is offering the most competitive prices, these do come with strings attached."