5 February 2007
Energy supplier npower launched its online tariff last week that would see a significant drop in costs for new customers, sparking a debate as to whether online tariffs will be cheaper for consumers in the long-run.
British Gas' Click Energy tariff was shown up early on this year when it went from being one of the cheapest energy providers to one of the most expensive at the beginning of this year.
From January 8th, Click Energy customers faced higher prices with gas costing 12.4% more than the year before and electricity costs rising by 9.4%.
However, for the time being it appears that npower's Sign Online tariff will prove to be the best deal for new customers, costing £142 less per year than Click Energy, according to the price comparison and switching website uSwitch.com.
Geoff Slaughter, Product Manager at uSwitch.com, said that it was a shame that only the new customers would benefit from npower's new, cheaper prices and reflected that paying 7.6% more than more recent customers was hardly the way to reward its users' loyalty.
He added: "The lower price on offer also doesn't pass on anywhere near enough of the cuts in wholesale prices, but maybe npower has got something bigger, better and with double digit reductions up its sleeve?"
"In balance this is a positive move and one that makes the switching market even more competitive. The message to consumers is clear, if your current supplier won't cut you a deal then find one that will - at the moment npower could be your best bet for a best buy," Mr Slaughter concluded.