First Utility becomes latest energy supplier to announce price hike
First Utility has become the latest energy supplier to announce a price hike – with customers on its variable tariff due to face an average rise of £117/year from next month.
The supplier is the latest in a long line of energy companies, including each of the so-called big six, to announce a price rise from April in response to the regulator Ofgem increasing the level of its price cap on standard and default energy tariffs.
First Utility will be increasing the cost of its variable tariff from £1,137 to £1,254 as of 1 April for existing dual-fuel households with typical use. This ISN'T the maximum anyone will pay, as the price cap places a maximum charge on the rate you pay for gas and electricity – use more and you'll pay more, use less and your costs will be lower.
You can beat the hike now. Do a full market comparison via our free Cheap Energy Club and switch to save cash.
How will my bills change?
Whether or not your bills will change depends on what tariff you're on:
- If you're on a variable tariff – your annual bill will rise on 1 April. The average increase will be from £1,137/yr to £1,254/yr, up 10%, on typical use.
- If you're on a fixed deal – your bill won't change.
What can I do to beat the hike?
The best way to save on your energy is to switch provider.
If you're on a standard variable tariff, you're free to switch away at any time. Suppliers can't charge you exit fees if you're on this type of tariff – and savings of over £300/yr are possible.
Compare the whole of the market with our Cheap Energy Club.
What does First Utility say?
A First Utility spokesperson said: "Ofgem recently announced that it would be increasing its price cap by an average of £117 a year to accurately reflect the rising costs of energy, including wholesale and policy costs.
"These costs are felt by all suppliers and, as a result, First Utility will be increasing the price of its variable tariff in line with Ofgem's assessment."
The spokesperson added the majority of its customers will not be affected by the rise because they are on fixed-price contracts.
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