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British Gas knocked off top spot

05 March 2010

British Gas has been replaced by First Utility as the UK's cheapest energy supplier, according to one price comparison service.

Figures from Confused.com have revealed that First Utility's new iSave V3 tariff offers customers an average bill of £889, £10 cheaper than British Gas's best offer.

Gareth Kloet, head of utilities at Confused.com said the new deal was evidence that a price war is beginning to erupt between the country's major energy providers.

However, the expert warned that many of the best buy deals are only available online and standard tariffs have only reduced marginally in the last 12 months.

The cost of household energy can be a major worry for the country's older people as they tend to set aside a larger proportion of their income for heating.

Those who own their home could receive a welcome cash boost to meet the demands of energy bills with funds taken from the value of their property though a scheme such as equity release.