The move is bad news for those looking to take advantage of this deal and guard against rumoured energy price rises.
The tariff charges the average consumer a fee of £1,139 per annum and allows customers to fix their prices until September 2014. It has a £50 cancellation fee and has been the cheapest fixed price plan on the market since it launched just under two months ago.
The next cheapest fixed deal is First Utility’s new iSave Fixed v9 April 2015, which will cost the average user £1,170 per year, and has a £30 per fuel cancellation fee.
Other options include longer-term fixed plans, which allow consumers to lock in energy prices from now till 2017.
Looming price rises
The news comes as British Gas, which supplies 11 million customers, is rumoured to be gearing up for a price increase of 8%. The figure is roughly in line with the 6% increase which the supplier implemented in winter 2012.
Typically, when one of the big six energy suppliers – British Gas, npower, E.ON, EDF Energy, Scottish Power and SSE – announces a price rise, the others soon follow.
Energy companies are expected to blame any increase on high fuel costs, mounting distribution expenses and subsidies for government implemented green policies.
Fixing till 2017
Labour Leader Ed Miliband recently announced his intention to freeze energy prices for 20 months, between 2015 and 2017 should Labour win the next election. The statement provoked much debate around how the energy market operates, but failed to take into account the fact that consumers can already lock their prices until 2017.
The two longest tariffs currently available on the market are npower’s Price Protector March 2017 tariff, which is priced at £1341 per year and doesn’t have any early exit fees, and ScottishPower’s Help Beat Cancer Fixed Price Energy January 2017 tariff, which is priced at £1,350 and has a £25 per fuel cancellation fee.
*The price of each of the above contracts is based on the average consumer, using 3,300 kWh of electricity and 16,500 kWh of gas per year, paying monthly via direct debit and averaged across all regions in the UK.