First Utility Electricity Prices Review

The First Utility company is a reasonably new entrant into the UK energy market and is certainly making waves. Read our review of what all the fuss is about.

Recent events mean that First Utility became part of Shell Energy in 2018. On 1st December 2023, Shell Energy became a wholly-owned subsidiary of Octopus Energy.

About First Utility

The First Utility energy company was founded by the same people who manage the First Telecom company. It is an intermediary between the energy providers (those that generate the power in the UK) and the consumer. There are various tariffs available but you should look at the total costs as they are slightly different from those of other suppliers in the UK.

Their energy mix differs greatly from most of the major electricity and gas companies. Whereas most are investing in renewable energy sources to reduce their reliance on coal-burning technologies, First Utility is opting to source most of their power from nuclear sources. This strategy is similar to energy procurement in France, which may not emit CO2 like coal but may have different concerns for others. Their fuel mix during 2009 was as follows:

• Coal – First Utility 31.1% – UK average 32.9%
• Natural Gas – FU 34.9% – UK 43.3%
• Nuclear – FU 29.2% – UK 15.3%
• Renewables – FU 0.8% – UK 5.9%
• Others – FU 4.0% – UK 2.6%

First Utility and Smart Meter Tariffs

The government’s big push for UK homes is for them to have smart meters installed so you can see at a glance exactly how much electricity your home is using. The Energy Saving Trust estimates that most people should save between 10% and 15% on their energy by simply having these devices installed.

With First Utility, they will install one for your home for free if you are in the Midlands (more regions to follow), so this is a good incentive; however, you need to take a dual fuel tariff for this offer. The smart meter will also automatically send your data to FU. You can Google Power Meter in your standard Google account. First Utility is the only UK provider linked up with Google at the time of writing.

First Utility Tariffs

As mentioned they are only operating within the Midlands region and have two types of tariffs and both have daily standing charges which means you get billed no matter how much gas or electricity you use so you should compare these tariffs with the other main providers in the first instant.

• Isave tariff is available nationwide and is trumpeted as the cheapest dual fuel tariff. You get to manage your account online, where you submit your meter readings, effectively meaning there are no more estimated bills. You must pay by monthly direct debit and sign up for this tariff online. There are no early exit penalties, and the smart meter programme will be rolled out in due course.
• Smart meter tariff has the same prices and terms as above, but if you are in the Midlands, you get a free smart meter. The meter is read every 30 minutes during the day, and the data is then available for you to view.
• Standard tariff is slightly more expensive, but you can get paper bills. Really, there is no reason to choose this tariff.

What Else About First Utility?

The discounts offered for dual fuel tariffs (which you must take as you can’t just opt for electricity or gas) are applied as a credit to your bill at the end of a 12-month period. Therefore, if you leave during that 12-month period, you won’t get that discount.

If you choose the standard tariff and decide to pay by cash or cheque, then there’s a £4 fee to pay. Also, reading reviews about this company doesn’t look so good, with long delays in customer service calls. Perhaps the delays are due to being swamped with new customers because, at first glance, the First Utility electricity prices and rates look attractive.