Energy Prices Tumble as Online Price War Hots Up

Released on: August 5, 2009, 6:59 am
Author: uSwitch.com
Industry: Energy

Household energy prices are set to tumble again as E.ON launches a new online energy plan. The new plan sees E.ON become Britain’s second cheapest energy supplier, coming just behind EDF Energy. E.ON’s energy plan averages out at £1,017 a year, while EDF Energy’s average bill size comes in at £983. However, EDF Energy’s plan is only available in 10 out of 14 energy regions, which means that many households will not be able to benefit.

British Gas has been forced into third place by today’s move, leading to mounting speculation that Britain’s biggest supplier could make a bid to regain its crown by bringing out a market beating new plan. This would be even better news for consumers as it would push the cost of online energy plans down even further.

The online price war is also proving very timely for consumers coming off fixed price energy plans this year. There are 4.6 million UK households currently on fixed or capped energy plans – many of these were savvy enough to fix their prices last year therefore avoiding much of last year’s price hikes.

However, many of these plans are coming to an end and households will be thrown back onto the market. If they don’t act they could be pushed back onto a standard energy plan, which would see their annual bill increase by just under £100. However, if they take advantage and move to the cheapest online energy plan they could actually see their energy bill fall by £62.

Will Marples, energy expert at uSwitch.com, says: "The online price war is hotting up and energy prices are coming down as a result. If consumers want to benefit they need to ditch their expensive standard plans and move to one of the new online energy plans. The average standard plan is £1,239 a year while the average online plan is now £1,025 a year – this is an easy saving of £214 a year for the average household.

It’s also good news for people coming off low price fixed rate deals. They managed to avoid much of the 42% hike in prices last year and are still sitting on a competitive plan today. Now, as this plan comes to an end, they have the option to move online and save a further £62 on the cost of their energy. This is a real lifeline to those who were worried about where they were going to go next and who could see that moving back to a standard energy plan was going to cost them dear."

For more information please contact:
Jo Ganly, uSwitch.com 020 7802 2915 / joganly@uswitch.com
http://www.uswitch.com/

About uSwitch:
uSwitch.com is a free, impartial online and telephone-based comparison and switching service, helping consumers compare prices on gas, electricity, water, heating cover, home telephone, broadband, digital television, mobile phones, personal finance products and car insurance.