Sunday 6 October 2013

Energy price freeze for First Utility customers

First Utility has pledged not to increase gas and electricity prices for its customers this winter.

The price freeze, including standing charges and unit rates, will guarantee a price lockdown for all its existing variable tariff customers until March next year – the cheapest at £1,150 per year.

The energy supplier is urging the Big Six providers to follow suit and guarantee no price increases.

The call comes just over a week after Labour leader Ed Miliband promised to ban power price increases for 20 months if his party wins the next election.

Ian McCaig, CEO of First Utility said: “The rising cost of energy affects us all and many consumers will be worried about how it will impact their bills this winter. First Utility is genuinely focused on reducing energy costs for consumers and our promise to hold down prices until after the winter lessens the worry about heating their homes during the coldest months of the year.”

Price comparison site uSwitch.com welcomed the move. Ann Robinson, Director of Consumer Policy said: “First Utility is a small supplier but making some big waves in the market. While the Big Six appear to be squaring up for price hikes, this relative newcomer is throwing down a gauntlet by declaring a price freeze.”

First Utility challenged the energy industry to move to a one-day switching process last month to help conumers get a better deal.