Energy firms fire new shots in price war

30/03/2009

Britain's gas and electricity providers are continuing to cut prices, as lower costs of wholesale fuel filters through to consumers.

E.on has become the latest firm to make a move, bringing out its new Fixed Online tariff, which is the cheapest on the market.

It undercuts British Gas' Websaver 2 tariff, itself brought out as recently as early last week, by £1.24 a year.

The moves follow a round of price cuts on general gas and electricity plans from all of the "big six" energy providers in the UK.

However, all of these firms hiked bills twice last year due to high wholesale fuel costs - meaning that today's prices are still significantly higher than those of 2007.

Commenting, Gareth Kloet, head of utilities at price comparison site Confused.com, said: "E.on has brought out a brand new energy tariff to undercut its energy rival and now sits at the top of the 'best buy' league.

"While E.on's reaction to undercut British Gas's WebSaver 2 tariff by a mere £1.24 is not groundbreaking, any reduction in energy costs is good news for financially squeezed households which have seen their energy bills rise by more than 40 per cent since last summer."

Tags; Housing Debt and Bills, Retirement Money Problems, Young Family Finances,

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