First Utility

April 17, 2012 04:35 ET

First Utility Welcomes Nick Clegg Plans for UK Energy Industry

LONDON, UNITED KINGDOM--(Marketwire - April 16, 2012) - In his green economy speech on April 11th Deputy Prime Minister Nick Clegg announced a new scheme to increase transparency among the Big Six energy suppliers. The news centred on a landmark deal to ensure the six companies provide customers with a guaranteed offer of the best tariff for them.

The scheme could help customers to save up to £100 a year on their energy bills, and comes soon after First Utility ( launched a manifesto to increase transparency in the UK energy industry.

70 per cent of households in Britain are believed to be paying more than they need to in energy bills, but energy companies will now write to customers every year to detail which tariff best suits their needs.

Ian McCaig, Chief Executive Officer of gas and electricity supplier First Utility, stated: "Today's announcement is a positive move in that it will go some way towards resolving the current issues we have raised with regards to predatory pricing by the larger energy suppliers."

"Predatory pricing, the practice of selling a product or service at a very low price and below cost, effectively blocks new competitors from the market. The 'Big Six' companies are pushing their prices up for the vast majority of their 'stickier' customers, whilst introducing cut-throat offers for a small minority of new customers online. This is stifling the industry and preventing smaller, independent suppliers from offering consumers more choice."

In March 2012 First Utility was named the cheapest energy supplier in Britain. Its iSave v10 tariff costs an average of £1027 annually meaning an average saving of £224 for those who switch*.

Get a quote for First Utility's iSave tariff at:

About First Utility

First Utility is the smarter independent utilities supplier, offering gas and electric services to a range of consumer and business customers. It is the only energy provider to roll out smart meters to all its customers, throughout the UK. It is through the use of smart metering technology that First Utility can empower consumers to manage and reduce their own energy consumption and bills. First Utility is headquartered in Warwick.

*The £224 saving quoted for First Utility's iSave v10 dual fuel tariff was published in The Sunday Times with the statement; "Switching to First Utility's iSave v10 scheme, an online-only, monthly direct-debit deal costing £1027 [on average] annually, you save £224 a year ..." (Hussain, 2012, p.4d)

Hussain, A, 2012. How To Beat The Income Squeeze. The Sunday Times (Money Supplement), Sunday 18 March, p.4d.

First Utility's iSave is the UK's cheapest deal based on an average of all regions and average use of energy (3,300 kWh for Electricity and 16,500 kWh for gas.

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