First Utility

A question about : First Utility

We switched to First Utility from Southern a Electric in October on a 1 year fixed deal.

So far it is much cheaper for us, paying Ј97 a month instead of Ј135 a month for dual fuel.

They emailed me this week to offer to switch me to their 3 year fixed deal without penalties. The downside is that my electricity costs would go up from 14.52 to 15.73 and my gas would increase from 4.02 to 4.29.

Whilst the lure of fixing prices for 3 years is tempting am I likely to find a better deal as a new customer to a new company when my price plan ends in October? Not really savvy on energy companies, I was with Southern Electric for about 7 years.

Best answers:

• It's always a gamble going for fixes. Lately prices have been falling and may continue to do so. In light of that, do you want to end up paying more than you already are? Look at the exit penalty on the tariff offered, as that is what it will cost you to switch if another supplier comes up with a better long-term fix.
• I'm with FU on an electricity only deal which is presently 11.053p'kwh. Their present offering v45 March 2016 is 10.7p'kwh for a one year fix which is 4p less than you are paying now so fixing at even more looks like madness.
  In my view three years is too long at the moment and I'd guess you could do a lot better than your present tariff by swapping to someone else or even to FUs one year fix even if you had to pay the exit fee.
  You do really need to do your own sums