E.ON has announced that it will match First Utility’s chart topping iSave Fixed v12 June 2015 tariff.
E.ON’s new plan, E.ON Energy Fixed 1 year, will set back the average consumer* by £1,178 a year, which makes it the joint cheapest plan available.
Table topping energy plans
The plan joins independent supplier First Utility’s iSave Fixed v12 June 2015 at the top of the cheapest fixed price energy table. It is worth noting that the latter will help consumers avoid any price rises until June 2015, whereas E.ON’s new plan will shield households for one year.
Consumers should also bear in mind that First Utility’s iSave Fixed v12 June 2015 carries a £30 per fuel cancellation fee and E.ON’s latest has a £5 per fuel early exit charge.
Each tariff would enable the average consumer on a standard cash and cheque plan to save up to £256 per year, once price rises are implemented.
Small supplier Spark Energy is currently offering a cheaper deal, although its Advance 2 plan, priced at £1,116 a year for the average consumer*, is variable and does not offer protection against price increases.
‘Competition is critical if we are to see prices fall’
Tom Lyon, energy expert at uSwitch, said: “The writing’s on the wall for consumers who will be feeling the brunt of price hikes this winter. Before price rises were announced, over eight in ten consumers said that they would be rationing their energy use to save on bills. This number is now likely to escalate as fears are realised and people see their bills climb before their eyes.
“Rather than risk their health or well-being, consumers should look at the fixed price energy deals available. It’s great to see First Utility and E.ON lead the way by enabling consumers to lock in their energy bill at a competitive price. But it shouldn’t stop there.
“To get this market working, suppliers need to be falling over each other to offer the best deals. Competition is critical if we are to see prices fall, service improve and inefficiencies driven out. It’s crucial that consumers show that they won’t stand by and watch their bills rocket – instead they need to be keeping suppliers on their toes by shopping around and snapping up attractive deals while they last.”
*Based on a medium user consuming 3,300 kWh of electricity and 16,500 kWh of gas on a dual fuel tariff, paying by monthly direct debit with bill averaged across all regions.