Consumers get cheap and smart with uSwitch.com

uSwitch.com has teamed up with independent supplier, first:utility, to offer the cheapest standard energy plan on the market.

But, more importantly for cash conscious consumers, the plan also includes the installation of free smart meters, which could save them up to 10% on energy bills each year.

The first:utility plan, available through uSwitch.com's website and call centre, will cost on average £1,127 a year. The plan includes free installation of smart meters for both gas and electricity, which will allow customers to manage their household energy usage. It also means that they can avoid the pitfalls of estimated energy bills. Their energy bills will be based on up-to-date and accurate information rather than estimates, which can lead to discrepancies and debt.

Over 11 million energy customers (43%) have unexpectedly owed money to their energy supplier after a meter reading because the actual reading was far higher than previous estimates. On average, customers ended up owing £137. Less than half of energy customers (49%) have never unexpectedly owed money to their supplier because of a difference between estimated and real readings.

Will Marples, energy expert at uSwitch.com, says: "This is about putting consumers in control of their energy usage and their bills. Smart meters are being piloted by all the major suppliers, but it will be a long while before we see one in every home. With energy prices so high, many householders cannot afford to wait for this - they need to understand how they can cut their bills and avoid falling into debt today.

"As with any energy plan, consumers should always check whether it is suitable for their needs before signing up. The first:utility plan is a two year contract with early exit penalties. This tie-in allows first:utility to invest in its customers by subsidising the cost of the smart meters. It won't be for everyone, but this plan will offer real benefit for many consumers."

Mark Daeche, Chief Executive of first:utility, adds: "In a marketplace where there is very little in terms of differentiation between suppliers, we feel that the offer of 100% accurate bills through innovative smart meter technology will answer a lot of consumers' needs.

"In addition, as an independent player, we are a nimble organisation which is able to respond quickly to the fluctuating market conditions, and pass on real benefits to consumers."

Key points about the first:utility plan:

Standard plan paying by direct debit - average bill size £1,127

Accurate billing: an energy meter with an integrated communication device takes readings of electricity usage every half an hour to provide 100% accurate bills on a monthly basis.

Manage energy consumption: every day the smart meter relays half-hourly readings to first:utility's head office. This allows customers to access up-to-date usage and cost information online 24/7.

There is more good news for energy customers too, as green energy company Good Energy has announced it is dropping its prices by 7.5%. This will take its average annual bill down to £1,454, making green energy more affordable and giving consumers more choice. The price cuts come into effect on 31st January 2009.

For more information visit uSwitch.com