First Utility has pledged to be cheaper than any of the Big Six dual-fuel energy deals in a bid to help struggling households.
The independent energy provider today announced that it will track the Big Six every week to make sure the average price of its iSave Everyday variable tariff is cheaper than each of the Big Six's standard dual-fuel offers.
It will be priced at £1,250 a year (based on an average electricity consumption of 3,300kWh and average gas consumption of 16,500kWh), slightly higher than the cheapest price variable plan on the market, which is currently SSE's Discount Energy Bonus May 2015 (with paperless billing) at £1,134.
But unlike the SSE tariff, iSave Everyday has no early termination charges or minimum terms and First Utility will match the lowest Big Six variable dual-fuel deal within 60 days.
The deal is available to new and existing customers.
Shelter from price hikes
Meanwhile, npower has introduced the longest fixed price energy deal on the market, which will protect customers from further price rises for 33 months until 31 December 2015.
The new plan costs £1,305 a year on average, more expensive than Ovo's New Energy Fixed deal, which is £133 cheaper at £1,172 a year, but that only guarantees prices for 12 months.
Commenting on the npower deal, Tom Lyon, energy expert at uSwitch.com, said: "It's by no means the cheapest deal on the market, but it does offer shelter from price hikes until the end of 2015.
"However, it comes with a £50 cancellation fee per fuel, so consumers should weigh this up carefully before signing up. Importantly though, if you've never switched and are currently sat on one of the most expensive standard tariffs on the market then you could save almost £50 a year by signing up to this deal."
If you're tempted to fix, remember that that doing so after winter prices hikes is likely to mean you will pay more than if you wait for the traditional summer price cuts.
Big Six price changes over the past year
|Supplier||Date effective||Average gas price change (%)||Average electricity price change (%)|