First:Utility beats big six to become cheapest energy supplier

First:Utility has launched a successful bid to become Britain's cheapest energy supplier. Despite being small and a relative newcomer, First:Utility has flexed its muscles against the big six suppliers by offering the cheapest online energy plan and the cheapest direct debit standard plan in the market. Its online plan now comes in at £889 a year, £10 cheaper than British Gas, and its standard plan comes in at £1,074, £8 cheaper than British Gas, the cheapest of the big six suppliers.

First:Utility has started to carve out a reputation for offering consumers a serious competitive alternative to the big six energy suppliers. Its new online plan is available in all regions, but as with the majority of online plans consumers need to pay their bills by monthly direct debit to take advantage of them.

Emma Bush, energy expert at uSwitch.com, says: "This is great news for consumers and for the energy market. By offering such competitive prices, First:Utility is giving consumers a viable alternative to the big six energy suppliers. If it can continue to punch above its weight, First:Utility stands a very good chance of shaking up the market.

"Suppliers have consistently offered their most competitive prices online. Online plans are around £300 a year cheaper than standard plans, but only 5% or 1.3 million households are on one. Signing up to an online plan presents a great opportunity for households to take their energy bills back to levels last seen a couple of years ago. Today's move means that they now have even more choice."