First Utility has become the latest provider to slash its prices ahead of the winter weather.
Just a few hours after E.ON moved into the lead by cutting the cost of its FixOnline V3 tariff, First Utility regained the lead by bringing down the price of its iSave dual fuel.
The average bill for the tariff is now a market-busting £954 - £65 less a year than npower's cheapest average bill.
It follows a spate of cuts within the energy markets, which is great news for householders as they crank up the heating as the temperature drops.
Yet millions of people are still failing to switch and take advantage of the cheaper prices, with some paying hundreds of pounds a year more than they need to.
Scott Byrom, utilities manager at moneysupermarket.com, said: "Let the battle commence! Hot on the heels of E.ON taking top spot in the energy price market today, newcomer First Utility has reacted, just hours later, with a price cut on its dual fuel tariffs - iSave Dual Fuel and Smart Dual Fuel online Saver. This will be made available to new and existing customers of First Utility.
"They now sit comfortably at the top of the table with an average annual bill of £954. Scottish Power has also changed its prices in a number of regions, but this hasn't moved First Utility from the top spot. The scene is now set for competitors from the Big Six to retaliate - I don't think First Utility will hold its crown for long and expect British Gas to join the battle."
Online and monthly
All the leading deals require customers to manage their accounts online and pay by monthly direct debit, so if you're paying quarterly or receiving paper bills you are not on the best rate.
Scott urged bill payers to switch to a better deal as soon as possible.
"Moving to one of the market-leading deals and switching to monthly billing will mean you pay less, but that's not the only benefit.
"By paying monthly and managing their accounts online, customers can submit regular meter readings and pay the correct amount, rather than rely on estimates. That means they won't have any unpleasant surprises."
In a bit of a fix
Remember when prices soared last year? Did you fix to protect yourself from rising bills? Well, that fix is most likely coming to an end and failing to move to another competitive rate quickly could undo all your good work.
EDF's Price Freeze 2009, Scottish Power's Fixed Price Energy Oct 2009, and E.ON's Price Protection v16 and v17 have all now finished. If you think one of those is the tariff you're on - you're wrong.
There's good news if you're an EDF customer - they'll move you onto a cheaper tariff and you could see your bills fall by £21 a year.
Unfortunately, most other providers will move customers to a less competitive rate - so you need to proactively switch if you want the big savings on offer.
Best for me
Of course, just because First Utility is the cheapest provider on average, it doesn't mean it has the lowest cost for everyone.
Scott explained: "Brits should be aware it will not be the best value in all circumstances; cost will vary depending on region and your consumption. This further proves the importance of scouring the market to find the best deal for you."
Using moneysupermarket.com's comparison tool, you can find out which gas and electricity provider is the cheapest for you. Just enter your postcode and current usage.
|
Provider |
Best average bill |
|
First Utility |
£954
Smart Online Saver v1 |
|
E.ON |
£961.77
Fix Online v3 |
|
Scottish Power |
£972.38
Online Energy Saver 7 |
|
Ovo Energy |
£978.67
Standard |
|
EDF Energy |
£982.49
Online v5 |
|
British Gas |
£993.56
WebSaver 4 |
|
Scottish & Southern |
£1,009.52
Go Direct |
|
npower |
£1,018.54
Web 16 |
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