First Utility, an energy firm that has attracted tens of thousands of customers as it attempts to break the stranglehold of the “big six” on the market, is to increase its prices by an average 18pc on its leading tariff.
The rise will add £16 a month to the typical bill, or nearly £200 a year.
It will come as an annoyance to those who have switched to the company to avoid price rises elsewhere in the industry. Telegraph Money reported in December that 50,000 consumers were facing delays as they switched to First Utility’s cheap tariff, due to huge demand.
The rise also exceeds those made by the biggest suppliers. British Gas increased prices by 6pc in autumn and Npower increased gas by 8.8pc and electricity by 9.1pc for example.
But First Utility insists that customers will now be guaranteed to pay less than if they were on one of the standard tariffs of bigger firms. It is enacting the price rise by scrapping the iSave v12 tariff and moving customers on it to a new more expensive iSave Everyday.