BANK ACCOUNTS, CREDIT CARDS

New First:Utility plan designed to save money on energy bills

First:Utility's ‘iSave 8' dual fuel energy plan offers cash back to new customers who switch both their gas and electricity, and agree to pay by direct debit.

First: Utility’s ‘iSave 8' dual fuel energy plan costs £1,032 a year, which is only £42 a year more than ScottishPower's Online Energy Saver 15. Scottish Power’s deal was recently described as “currently the cheapest plan on the market” according to the price watchdog site uSwitch.

However, once the £75 cash-back is taken into account the price of the First:Utility plan effectively drops to £957 in the first year, making it more cost effective than Scottish Power’s deal.

Customers will be able to receive their cash-back after being with the supplier for just a few months. The energy firm said there are no cancellation fees and the tariff comes with a ‘price freeze' guarantee; “customers won't see a price rise for at least three months this winter” assured First:Utility.

"This is a competitive deal that will put cash back into customers' pockets. It's also a great opportunity for anyone who would like to move away from the traditional big six and try out a smaller supplier while still getting a competitive price” said Tom Lyon, energy expert at uSwitch.com.

Struggling with energy prices

Due to the recent energy price hikes, British consumers are facing an average extra charge of £155 per year to the cost of energy bills. According to recent research by a comparison site, these extra costs are making many British families rely on credits cards and overdrafts to pay the bills.

A majority of 71% of British consumers will need to turn to their savings, credit cards or overdrafts to fund rising fuel bills, according to the research.

42.4% of those surveyed said they will have to dip into existing savings, 16.9% plan to use their bank account overdraft more regularly and more than one in ten (11.6%) said they will have to put more on their credit cards.

Tags: bank cards, cost of living, CREDIT CARDS, energy bills, gas and electricity, saving money tips, utilities cost