Tag Archives: uSwitch

Guide To Stay Safe And Warm In A Winter Power Cut

Householders are being urged to cut out and keep a handy guide on staying safe and warm in the event of a winter power cut. The guide was pulled together by uSwitch.com, the independent price comparison and switching service, after many households were left without power during the recent big freeze.

Emma Bush, energy expert at uSwitch.com, says:”With this winter expected to be the coldest in 30 years and more snowfall predicted to be on the way, consumers should be as prepared as possible for any further power cuts.

“Energy companies will always try to get the supply back up and running again as quickly as possible, but in severe weather such as snow this can take time. If you are disabled, chronically ill, elderly or have young children in your home, let your supplier know as they may need to make you a priority.”

The uSwitch.com cut out and keep guide to surviving a winter power cut:

1.Be prepared – make sure you keep torches, spare batteries, candles and matches in an easy to get to cupboard or drawer and that all your family knows where they are. Keep a battery-powered radio tuned into a local station for information and have important numbers stored on a charged mobile phone.
2.Check – turn off all your electrical appliances and lights, but leave one light switched on so you know when the power is back on. Check whether neighbours have power or not. If it’s just your home affected, check your fuse box first before calling your supplier.
3.Stay warm – this is a priority. If a power cut leaves you without any heating move the whole family into one room, preferably south facing, and make sure you wear several layers of clothing, including a hat, scarf and coat if necessary. Use sleeping bags for extra warmth.
4.Stay safe – you can use other forms of heating such as paraffin stoves, but always read the instructions carefully and make sure the room is well ventilated. If you’re going to cook on a BBQ make sure you only do it outdoors. Never leave candles or heating appliances in unoccupied rooms.
5.Store water – if a power cut lasts for more than a few hours you will need to start storing water as the water supply may start to be affected. Fill saucepans, buckets, empty bottles or even the bath with water. If you are able to boil some water keep it in thermos flasks for warm drinks and fill hot water bottles to help stay warm.
6.Keep food fresh – if the freezer loses power do not open the door unless you have to, frozen food can last for around a day. The fridge is more of a problem, but if it is cold enough you can store food outside. Use a cardboard box with newspaper to stop it from freezing though.
7.Be a good neighbour – check on any elderly or vulnerable neighbours. If they’re struggling to keep warm invite them into your home – the more bodies, the more heat and the safer they should be.
8.Sub zero – if the temperature falls below freezing use towels and blankets to help insulate exposed water pipes. The last thing you need is a burst pipe.
9.After the power cut – check water pipes for leaks, reset electric timers and clocks and check the food in your freezer. If food has thawed do not refreeze as it could make anyone eating it ill.

Via EPR Network
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£319 Million Investment Could Spell Future Bill Misery For Consumers

Ofgem yesterday published final proposals for funding the first tranche of projects from a potential GBP1 billion package of extra investment in Britain’s high-voltage networks. The first tranche, totalling GBP319 million, will help connect Great Britain’s growing renewable electricity generation. However, this is just part of a much broader GBP233.5 billion investment programme that is expected to add GBP548 a year in total onto household energy bills, warns uSwitch.com, the independent price comparison and switching service. And while the investment is needed, consumers must start preparing for the eventual impact on their energy bills.

Will Marples, energy expert at uSwitch.com, comments: “This announcement is one of many that consumers can expect to hear about huge investments being made to secure our longer-term energy supplies. The investment is crucial, but there can be no doubt that it will have an impact on our future energy bills and this has to be explained to consumers now so that they can start taking action to protect themselves in the future.

“The average household energy bill today is GBP1,239 a year and the additional cost of investment alone is expected to add GBP548 a year onto our bills. Ongoing pricing trends coupled with this investment could see household energy bills hit as high as GBP4,733 a year by 2020, nearly four times higher than they are today.

“This is a wake-up call for us all. The GBP5,000 a year energy bill may seem like an outside possibility, but we have to remember that energy bills doubled in the last five years alone and that the huge investment needed to keep the lights on in Britain will alone add GBP548 a year onto our bills. The fact is we are entering a new era of high cost energy and households will have to adapt their behaviour accordingly.

“Consumers have to start taking action now to future-proof themselves against far higher energy bills. My advice is to invest in making your home more energy efficient, reduce the amount of energy you use and make sure you are paying the lowest possible price for it. Big projects such as a new energy efficient boiler or home insulation can be expensive, but you can speak to your supplier or the Energy Saving Trust to see if you can get any financial support to help with it. Any savings you make through cutting the price of your energy could also be re-invested into energy efficiency measures so that you reap even greater rewards in the future.”

Via EPR Network
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Door Step Energy Salesmen Must Provide A Written Quote From Today

The move is in response to growing concerns over doorstep selling and particularly the fact that many consumers end up on a worse deal after speaking to an energy company salesman. According to uSwitch.com research almost 7 million UK households have taken out an energy plan through a direct salesman, but less than a quarter of these (22%) believe they got a good deal.

Door Step Energy Salesmen Must Provide A Written Quote From Today

The new system of providing written quotes means that consumers will have proof of the deal they have been offered. But, importantly, the onus will still be on consumers to check for themselves whether it is the best plan they could be on.

Ann Robinson, Director of Consumer Policy at uSwitch.com, says: “This new rule is not about making sure consumers get the best deal, or even a better deal. It’s about making sure they have written proof of what they’ve been offered. It is then down to them to take this information and check for themselves whether they will be better off or not.

“The key thing is that consumers understand that the quote is not a guarantee that they will be saving money. Direct salesmen are not obliged to tell people about their company’s most competitive plans. These tend to be online and are around GBP300 a year cheaper than standard plans so consumers signing up with a salesman without comparing first could still lose out.

“Over a third of people (37%) think that energy salesmen don’t present them with enough information to make an informed decision while almost half (45%) don’t like the fact that the seller only represents one energy supplier. The new quotation system doesn’t tackle these issues, but it does mean consumers can protect themselves by taking the quotes and comparing prices before signing on the dotted line.”

As well as the requirement for written quotes, Ofgem is also increasing the threshold for debt blocking for prepayment meter (PPM) customers from GBP100 to GBP200. This means that those with a debt on their meter of up to GBP200 could now switch to a better deal opening up the opportunity for them to save money. The regulator has also brought in new rules on SME energy, but has backed off banning suppliers from rolling SME contracts over.

Via EPR Network
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New Small Business Energy Rules ‘Confusing’

Ofgem’s new rules for the small business energy market come into play yesterday – Monday 18th January, 2010. While designed to give greater protection to Britain’s SMEs, according to uSwitchforbusiness.com, the dedicated SME price comparison and switching service, the rules are in danger of confusing business owners and put too much onus on them to take action.

Jake Ridge, small business expert at uSwitchforbusiness.com, says:”Ofgem is doing the right thing in offering Britain’s SMEs greater protection in the energy market. However, these new rules have fallen far short of the simple blanket ban on evergreen or rollover contracts that was initially proposed and, as a result, are in danger of confusing busy SME owners.

“Small businesses need to understand the rules quickly to ensure that they benefit from the additional protection being offered. The key thing is that the rules only apply if you are a micro-business so check whether you qualify and let your energy company know straight away if you do. This means that when you come to renew your contract your supplier must provide you with clear written details of the full terms and conditions plus ensure you get suitable notice so that you can shop around for a new deal. Check with your supplier if you are unsure when your current contract will end.

“You also now have the right to opt out of being rolled-over – as soon as you sign a new energy deal let the supplier know you are opting out and this means that you can only be put onto a 28 day notice rollover plan at the end of your contract leaving you free to move to a better deal.

“The rules are complicated and unfortunately put too much onus on SME owners. But it’s a step in the right direction and should hopefully see more small businesses avoid the expensive trap of ‘evergreen’ energy contracts.”

The new rules only apply to micro-businesses, which Ofgem defines as a company that meets any one of the following criteria:
•Consumes less than 200,000 kWh of gas per annum
•Consumes less than 55,000 kWh of electricity a year
•Has less than ten employees (or the full-time equivalent) and an annual turnover or annual balance sheet total of Euro 2 million or less.

Via EPR Network
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Cold Snap Will Push Up Energy Bills But Not Household Energy Prices

Households could see their winter fuel bills increase by GBP60 if the cold snap continues into February, but reports that energy prices could go up are a red herring says uSwitch.com, the independent price comparison and switching service.

It costs £3 a day on average to heat a home, but uSwitch.com estimates that this could increase by GBP1 a day as consumers contend with the current freezing conditions. If the cold snap lasts a fortnight it will add GBP14 on to household winter fuel bills. But if it lasts two months it could cost households an extra £60.

However, reports that household energy prices could go up as a result of increased demand are misleading – energy suppliers buy their energy around a year in advance and can meet the current short-term increase in demand by topping up on the daily spot market. This means that consumers do not need to worry about their prices going up in the short to medium term.

Tom Lyon, energy expert at uSwitch.com, says: “If the cold snap continues through February it could add £60 on to household energy bills, but the cold snap would have to continue for far longer to have an impact on energy prices. Higher demand because of sub zero temperatures and the current rationing of energy to certain businesses does not mean suppliers will need to increase household energy prices. Hopefully this will reassure consumers, but our advice would be to think now about budgeting for an extra £60 for when the winter fuel bill drops through your letter box.”

Via EPR Network
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Four Suppliers Join in Energy Price Fray Today

Today has officially been the busiest day of the year for energy price cuts with four suppliers announcing changes. The day started with E.ON knocking smaller rival First:Utility off the cheapest supplier spot by cutting its online prices by £19. But in a David and Goliath move, First:Utility hit back, cutting its online prices by £13 from £967 a year to £954 a year on average.

The move sees First:Utility back in place as Britain’s cheapest supplier, although E.ON’s plan is available countrywide while First:Utility’s plan is only available in 12 out of 14 energy regions.

ScottishPower also ventured into the fray, but its move was more cautious. It has cut its gas rates in 5 regions taking the annual bill on its Online Energy Saver 7 plan to £972 from £975.

The final moves of the day are on mainstream rather than online plans. EDF Energy has changed its direct debit discount for standard customers from a fixed annual discount to a 6% discount. This will cut bills for the average customer from £1,147 to £1,118. It is also cutting prices for gas only customers. These moves mean that EDF Energy now offers the cheapest dual fuel standard plan paying by monthly direct debit and is thecheapest gas only supplier.

Will Marples, energy expert at uSwitch.com, says: “Given the amount of speculation and debate about price cuts this week, these moves could be seen as a bit of a peace offering. They don’t have the impact of a full blown price cut, but in the run up to winter they will be welcome. Whether consumers will be completely appeased remains to be seen, but the key thing now is to move to one of these competitive plans to make sure you benefit from lower prices in time for winter.”

Via EPR Network
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E.ON Now Cheapest Energy Supplier

The online price war has claimed another casualty. E.ON has cut its prices on its FixOnline3 plan, knocking First:Utility off the cheapest supplier spot. The move ends First:Utility’s winning bid to go head-to-head with the big six suppliers on price. At £962 E.ON’s plan undercuts the smaller supplier by £5, but E.ON’s plan is also available countrywide while First:Utility’s plan is only available in 12 out of 14 energy regions.

E.ON’s price cut comes at the same time as it is writing to customers who are coming to the end of a fixed price deal. E.ON is moving them onto a new fixed price plan which costs £1,198 a year. However, customers would be better off moving to the supplier’s more competitive online plan instead, saving £236 in the process. There are no exit penalties to take into account before making the move.

Will Marples, energy expert at uSwitch.com, says: “This is great timing for E.ON customers who are coming to the end of their fixed price plan. The supplier has already contacted them with a view to moving them onto a new fixed price deal, but its online plan is now £236 cheaper. I suspect that many customers will be taking this option instead.

“Thankfully there are no exit penalties, so even if you have already been moved onto the fixed price plan it’s not too late to change your mind. All you have to do is let your supplier know.”

Via EPR Network
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uSwitch.com Calls For Tougher Rules And Regulations To Govern Energy Doorstep And Direct Salesmen

uSwitch.com, the independent price comparison and switching service, is calling on industry regulator Ofgem to bring out tougher rules and regulations to govern energy doorstep and direct salesmen, after new research revealed that their sales tactics are leaving people feeling pressured, intimidated and on the wrong energy plan for their needs.

According to the research, almost 7 million UK households have taken out an energy plan on their doorstep or through a direct salesperson. However, less than a quarter of people who have done so (22%) believe they got a good deal. Of these, only 6% said that it reduced their bills significantly while just 16% said that they were very pleased with the deal they took up. On the flip side, 17% found that their new deal cost them more money than the one they switched from and almost a quarter (22%) said that they could have done better elsewhere.

Over four in ten people (44%) think that direct sellers on their doorstep, high street, at the local supermarket and on the phone are a nuisance. But for some consumers it crosses the line into something altogether more sinister with 22% finding salespeople intimidating and 59% finding the process too pressured, preferring time to think and make their own mind up.

More than a third of people (37%) think that salespeople don’t present them with enough information to make an informed choice, while almost half (45%) don’t like the fact that salespeople only represent one energy supplier – they would prefer to know what all the companies are offering instead.

As a result of growing unease and, in some cases, outright distrust, 82% of consumers would not buy directly from a salesperson. Almost a third (32%) would like to see tighter regulation, but over half (53%) would like to see the practice banned. Despite the fact that many elderly and vulnerable customers prefer to buy face-to-face or with direct human contact, almost three quarters of consumers (72%) say that direct selling does not have a valuable role to play in helping these groups to switch.

According to Ofgem, over half of consumers who switched in the past year did so through a direct or doorstep seller and vulnerable and prepayment meter customers are more likely to switch in this way. This suggests that rather than an outright ban, the regulator should be looking to keep open this important route to market for vulnerable consumers, but make sure they are fully protected and able to get the same level of information as those consumers who are able to shop around or do their own research.

Although Ofgem is bringing in rules to ensure that direct sellers have to provide consumers with a written quotation, uSwitch.com would also like to see consumers given more information about the types of deals available to them and a prompt to research the market before signing on the dotted line.

Via EPR Network
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Only 52% of Energy Customers Satisfied with Customer Service

A year of price cuts has seen the energy industry improve its image in the eyes of consumers, according to the latest independent Customer Satisfaction Report published today by uSwitch.com, the price comparison and switching service. 65% of energy customers are satisfied with their supplier – a 6% increase on last year when suppliers’ popularity suffered because of eye watering price hikes totalling 42% or £381.

However, while overall satisfaction levels have improved, there are still some key areas for concern, including customer service which remains a thorny issue with consumers. In fact, little over half of energy customers (52%) are satisfied with their supplier’s customer service and, tellingly, only 45% of people would recommend their supplier to somebody else. Despite price cuts averaging out at 4% or £54 in total this year, only 51% of customers think their supplier is giving them value for money. Although a 6% improvement on last year, it is still 5% lower than in 2007 when suppliers last cut prices.

Suppliers are engaged in an online price war, bringing out increasingly competitive new plans. But consumers are sceptical about whether their supplier has their best interests at heart. Only 40% of customers are satisfied that their supplier has them on their best deal.

The report, based on responses from over 5,000 energy customers in the UK, suggest that suppliers are gradually getting back on track, with satisfaction levels almost as high as those of October 2007, another price cut year. However, there are clear differences between the big six suppliers. While Scottish and Southern Energy (SSE) satisfies almost three quarters (73%) of its customers, poorest performer npower only satisfies 54%.

npower has been rated bottom for satisfaction by consumers for the second year running, but despite this has still seen an 8% improvement on last year. British Gas, which previously held the bottom slot (in 2007), has seen an 11% improvement in customer satisfaction this time.

Ann Robinson, Consumer Policy Director at uSwitch.com, says: “Last year’s hefty price increases damaged the public’s perception of energy suppliers. As a result, the industry saw a noticeable drop in satisfaction levels. This year, suppliers are starting to get back on track, winning customers over by cutting prices and bringing out increasingly competitive new plans. But if they are to make a real dent they have to focus on customer service – just 52% of people are happy with customer service, which is poor by any industry’s standards.

“With such clear differences between suppliers there is no excuse for consumers putting up with bad service. If you are not happy that you are on the best deal or getting value for money – speak to your supplier. Only around 1.3 million or 5% of households are on online energy plans and paying the cheapest energy prices in the market – consumers can do something about this. If you are still unhappy with the service you are getting, then it’s time to look around for a new supplier. There’s some good news here. Not only could you save up to £425 on your energy bill, but switching is also the one thing that suppliers consistently do well. Almost three quarters of customers (74%) are satisfied with this part of suppliers’ service.”

Via EPR Network
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Consumers Will Welcome News That Small Energy Suppliers Are Challenging Their Bigger Rivals With Market Beating Plans

The move will give more choice, especially for those looking for an alternative to the big six energy suppliers who dominate the market.

Two challengers – OVO Energy and First:Utility – have launched highly competitive online energy plans. OVO’s plan averages out at GBP978 a year, while First:Utility’s plan is market beating, averaging out at GBP967 a year. This makes it GBP16 cheaper than EDF Energy’s online energy plan, which costs GBP983 a year on average and is the cheapest plan offered by one of the big six.

First:Utility’s plan is available in 12 out of 14 energy regions and, unlike its other plans, does not require consumers to have a smart meter installed. In the remaining two regions, its smart meter online plan is available and it has just announced that it is dropping the price on this too. OVO’s plan is a fixed price plan, which means that customers will continue to benefit even if prices go up during the duration of the plan. However, there is an exit penalty attached.

Will Marples, energy expert at uSwitch.com, says: “This is the first time that a ‘challenger’ energy provider has gone head-to-head with major suppliers on price and beaten them. This is because their size works in their favour – they are quick and nimble and able to react to falling wholesale prices quicker than their bigger rivals. It’s good news for those consumers who have been looking for a viable alternative to the big six, but who are concerned about paying more for their energy as a result.

About uSwitch:
uSwitch.com is a free, impartial online and telephone-based comparison and switching service, helping consumers compare prices on gas, electricity, water, heating cover, home telephone, broadband, digital television, mobile phones, personal finance products and car insurance.

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86% of People Fail Test to Make Energy Bill Add Up

A straightforward test to see whether consumers can calculate an energy bill correctly has thrown up some shock results – with 86% of people getting it wrong. Of more than 2,700 people taking part almost 2,400 failed to make the bill add up correctly, even though they were allowed to make notes and use a calculator.

The test is being run by uSwitch.com, the independent price comparison and switching service, and is based on a mock-up of an energy bill with sub-totals blanked out. Consumers have to work out the missing numbers and calculate the end total. So far, it has left most people flummoxed. Despite being a common household bill only 379 people have arrived successfully at the correct total – a pass rate of only 14%.

Now more consumers are being urged to take part to see if they can do any better. The test can be found at: www.uSwitch.com/bill-challenge. People can also sign a petition for energy bills to be made simpler, clearer and easier:http://petitions.number10.gov.uk/betterbills/ – over 7,000 concerned consumers have already signed.

Ann Robinson, Director of Consumer Policy at uSwitch.com, says: “You shouldn’t need to be an ‘A’ grade student to be able to understand your energy bills. It’s deeply worrying that only 14% of people have passed what should be a straightforward test – it serves to highlight the fact that large numbers of consumers are in danger of being excluded because energy bills are far more complicated than they need to be. Ofgem is looking to address this, but it’s vital that consumers make their voices heard too.”

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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Direct Debit Fears Could Cost Consumers £33.5 Million

Ofgem is being urged to act quickly to stem the flow of consumers ditching direct debits and opting to pay energy bills by cash or cheque instead. New data f r o m uSwitch.com, the independent price comparison and switching service, shows a 7.3% drop in the number of switchers paying by fixed monthly direct debit, falling f r o m 92% a year ago to 85.3% today. Across the market it could mean 342,000 households less a year taking up the option and losing out on discounts totalling £33.5 million as a result.

According to Ofgem, over 40% of customers pay their energy bills by direct debit. Not only is this payment method convenient, but it is cheaper too as suppliers give discounts to customers paying in this way. These amount to £98 a year on average. The impact on household bills is noticeable – while the average household energy bill for a customer on a standard plan paying by cash or cheque is £1,239, this drops to £1,141 on average for those paying by direct debit.

More importantly, paying by direct debit is the gateway to suppliers’ cheapest tariffs – these can be found on their online energy plans. To get them, consumers need to pay by direct debit. The average household energy bill for an online customer is £1,021 – £218 cheaper than for a customer on a standard plan paying by cash or cheque.

But despite the cost implications, consumers are starting to shun direct debits. According to uSwitch.com this stems back to last year’s 42% or £381 price hikes which only hit many direct debit customers this year. Almost a third (30%) only had their direct debits increased in the first three months of this year – even though the price increases happened last year. As a result, many were playing catch up to make up for months of under paying and so were shocked when their supplier advised them how much their direct debit had to be adjusted by to compensate.

Not surprisingly, when advised of increases to direct debits a third of people (33%) felt compelled to contact their supplier. Following this 4% cancelled their direct debit even though this would increase the cost of their energy. And they’re not alone – according to the new data there has also been a 217% increase in people choosing prepayment meters (up f r o m 0.6% to 1.9%) and a 106% increase in people choosing variable direct debits – up f r o m 1.6% to 3.3%. In total, these shifts in payment methods could see 351,900 households paying more for their energy than they need to this year.

“Paying by direct debit opens the path to the cheapest energy prices in the market – this is not something to give up without a fight. If you are worried about the amount you are paying, contact your supplier to find out whether the monthly payment can be lowered. Make sure you are paying the lowest possible price for your energy by shopping around, cut down on the amount of energy you use and make sure you or your supplier is taking regular meter readings. Above all, be aware that coming off fixed monthly direct debit and paying by cash, cheque or variable direct debit will cost you money. This should always be a last resort.”

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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Household Energy Prices Are Set To Tumble Again As E.ON Launches A New Online Energy Plan

The new plan sees E.ON become Britain’s second cheapest energy supplier, coming just behind EDF Energy. E.ON’s energy plan averages out at £1,017 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 will not be able to benefit.

British Gas has been forced into third place by today’s move, leading to mounting speculation that Britain’s biggest supplier could make a bid to regain its crown by bringing out a market beating new plan. This would be even better news for consumers as it would push the cost of online energy plans down even further.

The online price war is also proving very timely for consumers coming off fixed price energy plans this year. There are 4.6 million UK households currently on fixed or capped energy plans – many of these were savvy enough to fix their prices last year therefore avoiding much of last year’s price hikes.

However, many of these plans are coming to an end and households will be thrown back onto the market. If they don’t act they could be pushed back onto a standard energy plan, which would see their annual bill increase by just under £100. However, if they take advantage and move to the cheapest online energy plan they could actually see their energy bill fall by £62.

Will Marples, energy expert at uSwitch.com, says: “The online price war is hotting up and energy prices are coming down as a result. 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 £1,025 a year – this is an easy saving of £214 a year for the average household.

It’s also good news for people coming off low price fixed rate deals. They managed to avoid much of the 42% hike in prices last year and are still sitting on a competitive plan today. Now, as this plan comes to an end, they have the option to move online and save a further £62 on the cost of their energy. This is a real lifeline to those who were worried about where they were going to go next and who could see that moving back to a standard energy plan was going to cost them dear.”

Via EPR Network
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Should We Expect Further Price Cuts As British Gas Reports Increase In Residential Profits?

•Centrica’s profits fall 5%, while British Gas residential reports an increase in half year operating profits of 80% to £299 million (2008: £166 million)

energy Price Cuts

•Falling wholesale prices contribute to increased half year profits for British Gas residential

•Some of the benefits of falling wholesale prices already passed onto customers – British Gas has cut its prices twice this year shaving 10% or £126 in total off the average dual fuel bill

•Increase in profits should cushion customers from future price increases, and may even allow for further price cuts

• Average household bill for a dual fuel British Gas customer has dropped from £1,328 to £1,202 this year – £290 or 32% higher than its average bill of £912 on the 1st January 2008

•British Gas has led the field in offering the most competitive energy plan, only recently losing its crown to EDF Energy.

Centrica’s results today reveal that while overall profits have fallen, British Gas residential has reported a significant uplift in profits as a result of falling wholesale prices. Some of these benefits have already been passed onto customers with two price cuts this year totalling £126 or 10%.

This increase in profits should mean that customers can expect to be cushioned for some time from future price increases – last year BG increased prices by £416 or 46% – and there may even be the possibility of further price cuts to come

Ann Robinson, Director of Consumer Policy at uSwitch.com, says:”This increase in profits can only be a good thing for British Gas customers. While customers have already benefitted from two price cuts this year, today’s results should hopefully give them the peace of mind that they are unlikely to see any price increases for some time, and may even benefit from a further price cut. This year British Gas has led the field in offering the most competitive online plan in the market only recently losing its crown to French rival, EDF Energy. With today’s announcement, British Gas is in a strong position to fight back and reclaim the spot as Britain’s cheapest supplier.

“But rather than holding out for further price cuts, consumers should help themselves now by making sure they are paying the lowest possible price for their energy and learning to use less of it. Moving to dual fuel, paying by direct debit and signing up to an online plan will all help save money – in fact switching to a competitive plan could cut your energy bill by up to £425.”

About uSwitch:
uSwitch.com is a free, impartial online and telephone-based comparison and switching service, helping consumers compare prices on gas, electricity, water, heating cover, home telephone, broadband, digital television, mobile phones, personal finance products and car insurance.

Via EPR Network
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