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3.5% price rise announced by First Utility

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Man Shocked at his bill

Customers on First Utility’s standard variable tariff will see a price increase of around £39 to their bills as a result of the suppliers 3.5% price rise.

The increase has been blamed on increased wholesale costs, higher transmission and distribution costs and additional costs due to the government to support renewable energy.

Typically the average annual bill will rise from £1,124 to £1,163.

The majority of First Utility’s customers are on fixed rate tariffs and won’t be affected, less than 40% are on the iSave Everyday tariff which will incur the increase.

The supplier said it also faced an additional cost of £23 per customer in 2014 to meet its Energy Company Obligation, but these costs will be absorbed by the company rather than passed onto consumers.

First Utility said they would refund all their electricity customers with the £12 rebate from the revised Warm Homes Discount Scheme in the autumn.

Ian McCaig, chief executive at First Utility, said: “Our mantra is to help consumers minimise their energy spend by offering lower tariffs and campaigning for change in the industry to reduce costs and put more power in the hands of the consumer.

“Unfortunately we’re in an industry where costs are continuing to rise – driven by investments in infrastructure, policy costs and a gradual increase in wholesale costs.

“However, we’ve held off making any increases during the winter when usage and therefore bills are at their highest and we have absorbed increasing costs as much as we can – that’s why our increase is lower than the big six.”

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