Energy firms do battle with online tariffs

06/08/2009

Apparently increasing levels of competition in the UK energy market are "great", Confused.com has said.

The financial website was reacting to news that E.ON was introducing a new SaveOnline Tariff, whose typical annual cost undercuts British Gas' rival Websaver tariff in all regions.

Figures from Confused.com show that EDF's Online Energy v5 is typically the cheapest on the market, with costs of £982 a year.

SaveOnline v1 is at £1,017, with the Websaver 3 at £1,019 - although the E.On product is the cheapest of all in four UK regions.

Commenting, Gareth Kloet, head of utilities at Confused.com, said: "This new tariff from E.On is a further blow to British Gas as it is another, more competitive choice for consumers who have 'average consumption'.

"It's great to see providers continuing to cut prices ahead of the winter - let's just hope they don't find an excuse to reverse this, as consumption increases towards the end of the year," he added.

“EuroDebt welcomes the increased competition and introduction of new tariffs. We introduced our free comparison site at www.energyswitching.co.uk to allow all UK residents to determine whether the provider and tariff they are on is the best for them," director Kevin Still commented.

"Our aim is to increase the level of disposable income for households that are struggling in the recession. We are committed to providing services to individuals and families that may be subject to financial exclusion. Being on a Debt Management Plan or an IVA should not stop people from taking advantage of the best energy tariffs or having access to bank accounts and be able to pay via lower cost channels like the Internet.”

Energy suppliers in the UK imposed several price increases over 2008, due to high commodity prices on the global markets.

This means that, despite the recent cuts, costs are still higher for customers than they were at the beginning of last year.

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