Tag Archives: online energy plan

E.ON Fires Latest Salvo in Online Price War

E.ON has launched a new fixed price online energy plan – FixOnline 3 – which allows consumers to fix their prices until 1st December, 2010. The plan is only available to those who will manage their account online and pay by monthly direct debit. In return, they will be paying the second lowest energy prices currently available in the market and will only be paying £1 more than if they were on the cheapest plan in the market.

E.ON’s new plan averages out at £984 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, including those in London, will not be able to benefit. E.ON, and British Gas which brought out a new competitive online plan only yesterday, will be able to target those areas missing out.

With suppliers cutting online prices, hopes are that it will encourage consumers to start paying by direct debit again. New uSwitch.com data revealed a 7.3% decline in the number of switchers opting to pay by direct debit. If the trend continues, it could result in 342,000 households ditching direct debits this year – and losing £33.5 million in discounts on their energy bills as a result.

Will Marples, energy expert at uSwitch.com, says: “To see two of the big six suppliers launch competitive new energy plans in as many days is great news both for consumers and the market. The price war is injecting new life into the market and making consumers sit up and take note. If they take advantage of the lower prices now available it will help them to manage their energy costs going forward.

“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 £1,015 a year – this is an easy saving of £224 a year for the average household. With winter fast approaching, it’s a saving households should definitely be looking to make.”

Via EPR Network
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British Gas Fights Back in Online Price War

British Gas has launched a new online energy plan, finally stepping into the price war that lost it its crown as Britain’s cheapest supplier. However, it hasn’t made an all out bid to reclaim its title. Instead it has gone for a tactical approach, hitting EDF Energy in its ‘home’ regions – the areas where it is the incumbent supplier.

British Gas’ new Websaver 4 energy plan averages out at £994 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, including those in London, will not be able to benefit. British Gas, by making its new plan available in all areas, will be able to target those areas missing out. Its new plan is also available to existing customers.

The online price war is also proving very timely for consumers coming off fixed price energy plans this year. With the potential for further price cuts and online prices currently so competitive, these are being urged to think carefully before fixing again as they could incur an exit penalty if they change their mind at a later date.

Will Marples, energy expert at uSwitch.com, says: “This is another shot in the price war – but it certainly isn’t the final one. It will shake things up, but we are certain to see other suppliers making moves of their own. This is great news for consumers who are starting to see some very competitive energy prices coming onto the market which, if they take advantage, will help them to manage their energy costs going forward.

“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 £1,021 a year – this is an easy saving of £218 a year for the average household. With winter fast approaching, it’s a saving households should definitely be looking to make.”

Via EPR Network
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