Some price comparison websites would argue the launch of British Gas’ Websaver 5 tariff earlier this month marked the beginning of an energy price war, and its rivals would soon retaliate. This week has seen just that, with nPower’s fierce response of an even cheaper tariff to fuel the price war. And chances of others following suit look high.
Sign Online 17 is nPower’s latest offering, and it packs a real punch with an average dual fuel price of just £907 a year. This undercuts Websaver 5 which is £928. Customers looking for the best deal are likely to want the £20 or so saving and make the switch, but are being urged by the likes of Moneysupermarket.com to hold fire. This is because the other energy contenders are likely to make a move too.
Moneysupermarket.com’s Utilities Manager, Scott Byrom said ‘We are clearly seeing a battle between providers for the top spot on the table. While this is not uncommon for this time of year, I would advise customers to keep their eyes peeled for further updates to the market.’
Before making any decision, customers are also recommended to consider other factors affecting their tariff, like where they live. Confused.com commented on the new Sign Online 17 tariff, saying although some customers could save a massive £455 by switching, this is dependent on the tariff they choose, their payment option and where they live. It is wise to read all the small print first, or get a quote based on your energy usage.
Nevertheless, nPower’s new deal has sparked further excitement in the energy market, and Gareth Kloet, Head Of Utilities at Confused.com said ‘It’s great to see another significant price cut from one of the ‘big six’…hopefully this trend will continue’.
Will Marples, energy expert at uSwitch.com, also said: “It is good to see suppliers continuing to offer new competitive online tariffs, providing customers with more choice and better savings – particularly in the run up to Christmas.’
The price war seems genuine, and with nPower now overtaking British Gas and newcomer OVO in the battle for cheapest tariff, it will be interesting to see how the likes of Scottish Power and EON respond.
It’s a welcome break for customers who have seen constant price increases despite cheaper wholesale energy prices. The real benefits of Websaver 5 and Sign Online 17 however only apply to customers willing to switch to an online tariff. They come with compulsory online account management, paperless billing and direct debit payments, and those reluctant to make the move will not feel the benefit.
As mentioned, online tariffs vary depending on where you live and how much energy you consume. Our article on ‘The Best Energy Tariffs’ will give you an up to date picture, however a price comparison website like Confused.com will help you find the best deal in your area. We also recommend you read our ‘How To Determine Your Energy Usage Group’ article.
Sources:
http://www.energyhelpline.com/news/article.aspx?aaid=19512967&y=2009&m=12&w=3&pid=1
http://www.myfinances.co.uk/cut-your-bills/news/new-tariff-fuels-energy-price-war-$1347121.htm
http://www.thisismoney.co.uk/bargains-and-rip-offs/household-bills/article.html?in_article_id=495986&in_page_id=510&ct=5
http://www.moneynews.co.uk/7763/energy-prices-assessed-by-uswitch-com/
