As First Utility launches the cheapest energy tariff around, Matt Ridout asks whether we are seeing a price war among smaller suppliers?
Are we seeing the outbreak of a gas and electricity price war beginning between small suppliers? In the past two weeks both Ovo and First Utility have launched market-leading tariffs, both costing the average user under £1,000 a year.
Ovo was the first supplier to offer a sub-£1,000 deal last week, launching its new Cheaper Energy Fixed deal. The tariff sees dual fuel prices for a typical medium-usage household set at £998 a year with rates fixed for 12 months.
Yesterday, First Utility fired its response by launching the iSave Fixed v20 July 2015. This deal costs £994 for a typical medium-usage household annually and sees rates locked until the end of July 2015.
One of the newest suppliers on the market, Green Star Energy, has launched the cheapest two-year fixed deal, with its new No Worries 24 Months Fixed version 1404 Paperless tariff costing just £1,072 a year, with prices locked for a full two years.
The catch? All the tariffs incur cancellation fees should you want to switch away prior to the end of their fixed periods, with each one charging £30 per fuel should you want to take your business elsewhere. The best recommendation we can give is to compare your current supplier and tariff with all of the deals available on the market to see how much you could save.
Here are the cheapest deals around at the moment
* based on a typical dual fuel tariff costing £1,315 (SourceOfgem). All costs are for a yearly average usage dual fuel household paying by monthly direct debit. Average usage defined by Ofgem as 13,500 kWh p.a. of gas and 3,200 kWh p.a. of electricity.
Data correct as of 16/04/14