Deputy Prime Minister Nick Clegg recently announced a new transparency scheme to
ensure the Big Six energy companies provide customers with a guaranteed offer of the best tariff for them.
It is hoped the scheme could save customers up to 100 a year on their energy bills. Studies indicate around 70 per cent of UK households pay more than they need to in energy bills, so the new scheme means energy companies will now contact customers each year to detail which tariff best suits their needs.
Ian McCaig, Chief Executive Officer of gas and electricity supplier First Utility, stated: Todays announcement is a positive move in that it will go some way towards resolving the current issues we have raised with regards to predatory pricing by the larger energy suppliers.
Predatory pricing, the practice of selling a product or service at a very low price and below cost, effectively blocks new competitors from the market. The Big Six companies are pushing their prices up for the vast majority of their stickier customers, whilst introducing cut-throat offers for a small minority of new customers online. This is stifling the industry and preventing smaller, independent suppliers from offering consumers more choice.
First Utility is the smarter independent utilities supplier, offering gas and electric services to a range of consumer and business customers. It is the only energy provider to roll out smart meters to all its customers, throughout the UK. It is through the use of smart metering technology that First Utility can empower consumers to manage and reduce their own energy consumption and bills. First Utility is headquartered in Warwick.