First Utility said it has paid the Living Wage rate since it began trading in 2006 but has now achieved formal accreditation from the foundation.
First Utility’s commitment will apply to all its 1000 staff, as well as third-party contractors and suppliers.
The Living Wage Foundation announced the rate has been increased by 40 pence to £8.25 an hour, up from £7.85 previously.
Workers in London will see their rate of pay increased by 25 pence, raising their pay to £9.40 p/h from £9.15 p/h.
First Utility’s chief executive Ian McCaig said: “We’ve long been proud to offer our employees the National Living Wage – it not only reflects our commitment to being a good company to work for, but also ensures that we have the best team in place to provide a great experience for our customers.
“Our staff are dedicated and work hard and we believe they should be paid appropriately.”
The Living Wage Foundation said 68,000 employees across the UK now benefit from the measure.
Utility companies National Grid, Centrica, British Gas, Ovo Energy and Yorkshire Water have all been accredited as Living Wage employers.
Last week big six supplier SSE, the largest FTSE 100 company to be accredited, revealed how the commitment is driving up pay in its supply chain.
Living Wage Foundation director Sarah Vero said: “The Living Wage is now a truly UK wide movement and recognised as a mark of responsible business.
“The accreditation of First Utility helps grow the Living Wage into the consumer arena. As more independent retailers and services become Living Wage employers, the public can start to show their support for these businesses through their purchasing decisions. We hope other energy suppliers will follow their lead.”