TalkTalk First Utility broadband service takes on TalkTalk, Virgin, BT and Sky
First Utility, UK’s largest independent gas and electricity supplier, aims to disrupt telecoms in the same way it has the energy sector as it launches three broadband deals to take on TalkTalk, Virgin, BT and Sky. First Utility's deals come with unlimited downloads and no set-up fees, and offer three speeds: 17Mbps, 38Mbps and 76Mbps, with prices ranging from £18.99 to £34.99 a month. The new contracts will be offered to existing customers initially and the company aims to roll them out nationwide later in the year.

Energy supplier First Utility has turned its hand to broadband, launching three new contracts it hopes will rival the likes of Sky, BT, Talk Talk and Virgin.

It will offer deals at three speeds, 17Mbps, 38Mbps and 76Mbps, priced between £18.99 and £34.99 a month.

The UK’s largest independent gas and electricity supplier, aims to scoop up broadband contracts with some of the 15 million households paying over the odds on expensive out-of-contract deals.

Everyday essential: Could a First Utility deal cut your broadband bills?

According to figures from comparison site, uStwitch, the major broadband suppliers typically hike prices at the end of their contracts by up to £100.

Households rolled over onto these deals could avoid overpaying by simply calling their existing provider to negotiate a cheaper deal or running a comparison and switching again.

First Utility, which was founded in 2008, aims to stand out from the pack by pledging that customers' prices won't got up automatically as soon as their fixed term deal ends.

This is the same problem which plagues energy customers. A whopping 70 per cent of those signed up to contracts from Npower, SSE, Scotish Power, E.on, EDF and British Gas are stuck on out-of-contract deals which cost hundreds more than the best buy deals available.

Ed Kamm, UK managing director at First Utility, says: ‘The parallels between the energy and telecoms markets are striking, with large swathes of households paying far too much for both services.

'We’ve proven that our approach of putting the customer in control of their energy results in more money in their pockets and we believe we can do the same with broadband. We’ve been successful in unsettling the big six in energy and our next target is the big four in broadband.'

What you get

First Utility is offering three deals - the First, Super First and Ultra First broadband contracts.

Each deal lasts 18 months and promises no set up fees, plus users won’t see their monthly bills jump at the end of the term.

The new contracts will be offered to existing energy customers first, but the company aims to open up the deals to everyone later this year. However, there may be some areas of the country where its network doesn't reach.

All three contracts come with unlimited downloads and no set up fees.

If you want to add a calls package beyond the basic pay-as-you go deal on top, you will pay extra. Evening and weekend calls cost £3 extra a month, an anytime calls package costs £7 and an international calls deal adds an extra £5.

All contracts currently come with a tempting sign-up bonus if you sign up before March 29 - you get a £25 Amazon gift card when signing up to the First and Super First deals and the fastest Ultra First contract gets you a £50 gift card.