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First Utility raises prices by 9.7% - act now to save

Fred Isaac

Fred Isaac
Feb 27, 2017

First Utility, the biggest independent energy provider, has become the latest supplier to raise prices this winter.

On Friday, the supplier announced its standard variable tariff will increase by 9.7% from 1 April.

If you’re on this plan, we urge you to compare energy deals now and switch to avoid overpaying.

More than 100,000 customers will be hit with higher bills rise by an average of £106.60 a year if they fail to switch.

The typical dual fuel household’s average yearly bill will go up to £1,148.

The 13% – roughly 117,000 – of First Utility’s customers who on its First Variable tariff will be affected.

But the price rise won’t affect households in the Eastern, Southern or Norweb (north-west England) energy regions, or those on First Utility fix.

First Utility’s price rise follows similar announcements by Scottish Power, Npower, EDF and Co-operative Energy.

Only British Gas has so far bucked the trend, freezing its standard prices until 1 August (although these customers were already paying over the odds).

First Utility is writing to affected customers over the next few days to warn them of the increase and provide details of cheaper fixed-price deals.

It blamed the hike on higher wholesale energy prices and the cost of policy obligations such as the smart meter roll out, which have risen by 22%.

If you’re looking for a cheaper deal, you don’t have to go far.

First Utility’s cheapest one-year fixed deal (First Fix March 2018) costs an average of £960 a year for a normal dual-fuel home - £200 a year cheaper than the increased cost of its standard plan.

Ed Kamm, the supplier’s MD, said: “After a period of low wholesale prices, energy and industry policy costs have increased quite substantially over the past year and that unfortunately means we need to reflect this in the price of our variable tariff. This will only impact a small proportion of our customers thanks to our focus on providing customers with great value fixed-price tariffs.”

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