Consumers benefit from new energy price war

06/04/2009

The typical Brit has a lot to gain from the current "price war" being fought among energy firms, experts have said.

Three different "best buy" products have been launched over recent days, with British Gas now offering the average customer an annual price of £1,034 in one of its online plans launched last week.

The UK's largest energy provider had launched the Websaver 2 days before, offering a £1,045 a year price.

Rivals E.on then retaliated by launching a plan costing customers £1,044 - before the Websaver 2 was reduced once more.

Commenting on the moves, Will Marples, energy expert at financial website uSwitch, said: "An online price war is exactly what consumers need - suppliers will want to shake up the energy market and gain market share, but households will be winners too."

EuroDebt director Kevin Still added: "We would encourage people in financial difficulty to make wider use of the internet to take advantage of the best tariffs available, but it is often the case that restrictions on payment methods and clearing existing arrears may represent a barrier to switching. I think there should be more encouragement for households to use online shopping for many of their everyday needs, to take advantage of the best offers available and use these tools to manage their accounts and statements.

"EuroDebt works with its clients to look at setting up basic bank accounts or pre-paid cards so that payment by direct debit or an accepted Internet payment method are routinely available."

The average cost of energy per year for online plan customers currently stands at £1,072.

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

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