You are here: Home - Household Bills - News -

Price war heats up between small energy providers

Written by:
A new price war has begun between small energy providers First Utility and Ovo, with both launching tariffs under £1,000 in the space of week.

Last week Ovo made headlines by launching its Cheaper Energy Fixed tariff, priced at £998 a year.

Yesterday First Utility responded with its iSave Fixed July 2015 tariff, which is £4 cheaper.

Mark Todd, director of price comparison website, said: “These new deals have created a massive gulf between them and the big supplier’s standard prices, which most consumers pay.”

A typical gas and electricity bill is £1,315 a year, according to industry regulator Ofgem, and offers no price guarantee.

Consumers could save up to £321 a year by switching to First Utility’s newest tariff, Todd said. 

“The smaller suppliers are sending warning signals to the ‘Big Six’ stating that they are not to be underestimated and are well and truly a force to be reckoned with,” he added.

“Consumers need to step back and ask themselves where they stand on standard prices.”

The ‘Big Six’ energy providers face investigation by the Competition and Markets Authority (CMA) after an Ofgem report released last month revealed “possible tacit co-ordination” on the size and timing of price rises.

Tag Box

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

Autumn Statement: Everything you need to know at a glance

Yesterday Chancellor Jeremy Hunt made his first fiscal statement in the role, outlining a range of tax measure...

End of Help to Buy: 10 alternatives for first-time buyers

The deadline for Help to Buy Equity Loan applications passed on 31 October. If you’re a first-time buyer who...

Moving to an energy prepayment meter: Everything you need to know

As households struggle with the soaring cost of energy, tens of thousands of billpayers are expected to move o...

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

DIY investors: 10 common mistakes to avoid

For those without the help and experience of an adviser, here are 10 common DIY investor mistakes to avoid.

Mortgage down-valuations: Tips to avoid pulling out of a house sale

Down-valuations are on the rise. So, what does it mean for home buyers, and what can you do?

Five tips for surviving a bear market mauling

The S&P 500 has slipped into bear market territory and for UK investors, the FTSE 250 is also on the edge. Her...

Money Tips of the Week