As First Utility announces price hike, npower launches cheapest fixed price deal on the market
First Utility bows to pressure and announces an 18.6% price hike to come into effect 1st June
At the same time, npower has launched two new fixed price tariffs – it now has the cheapest and the longest fixed price plans on the market
At £1,184 a year, npower’s cheapest fixed price plan costs only £38 more than the cheapest overall plan on the market, but protects against price hikes until the end of June 2014
With a range of competitive fixed price plans on the market and every indication that the big six suppliers will be following smaller rivals in hiking prices, consumers are urged to shop around now.
As another small supplier bows to market pressure and increases its prices, npower is helping consumers to take control of their energy costs for the next two and a half years with the launch of its new ‘Fixed Family’ tariffs. npower already has the longest fixed price tariff on the market, but it has now boosted its offering with the cheapest fixed price plan too.
At £1,184 a year, npower’s Online Price Fix June 2014 protects customers from price hikes until the end of June 2014. It costs £38 a year more than the cheapest overall plan on the market, SSE’s Discount Energy Bonus October 2014 (with paperless billing), which is however a variable priced plan. It is also £8 cheaper than the popular EDF Energy plan, Blue + Price Promise February 2015, but the latter does not carry an exit penalty plus offers 8 months more price protection.
Importantly, the new npower ‘Fixed Family’ tariffs are cheaper than any of the big six suppliers’ standard cash and cheque plans. This makes the decision to switch to a fixed price energy tariff even easier for those who have never switched before. However, consumers do need to be aware that there are cash penalties should they choose to leave early.
The new plans mean that consumers now have an even wider range of competitively priced fixed price plans to choose from. This is particularly important given recent indications that the big six could be heading towards another round of price increases. While there are cheaper tariffs on the market these are variable and therefore do not offer any price guarantee.
Tom Lyon, energy expert atUswitch.com, says: “With the possibility of price hikes later this year, these new tariffs from npower boost the current range of competitively priced fixed price plans and could help households take control of their energy bills for the next few years. They offer consumers decent savings against standard tariffs, but with the added peace of mind of knowing that they are protected from price hikes for up to three winters.
“There are some marginally cheaper options available for those who are prepared to take a chance with price hikes. However, fixed price tariffs will help those consumers who are sat on old-fashioned and expensive standard plans, to switch to a cheaper deal and enjoy price protection for a good length of time. With such competitive fixed price options around, it makes sense for households to plan ahead and start shopping around now.”
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Type of plan
|
Plan Name
|
Price
|
Fixed or Variable
|
Average standard (cash and cheque)
|
N/A
|
£1,353
|
Variable
| |
Average standard (direct debit)
|
N/A
|
£1,265
|
Variable
| |
Cheapest fixed price
|
npower’s Online Price Fix June 2014
|
£1,184
|
Fixed until the end of June 2014
| |
Second cheapest fixed price
|
EDF Energy’s Blue + Price Promise February 2015
|
£1,192
|
Fixed until end of February 2015
| |
Longest fixed price
|
npower’s Price Fix December 2015
|
£1,305
|
Fixed until end of December 2015
|
Source: Uswitch.com
Notes to editors
First Utility 24/4/2013
npower press release 24/4/2013: http://www.npowermediacentre.com/Press-Releases/npower-launches-Fixed-Family-of-tariffs-1246.aspx.
Online Price Fix June 2014 is £1,184 a year and Price Fix December 2015 is £1,305 a year. Bill sizes are based on a medium user npower customer using 3,300 kWh of electricity and 16,500 kWh of gas paying by direct debit with bill sizes averaged across all regions.
Calculation is the difference between SSE’s Discount Energy Bonus October 2014 (with paperless billing) which is the cheapest plan on the market for a customer paying by monthly direct debit in arrears at £1,146 a year and npower’s Online Price Fix June 2014 at £1,184 a year. Difference is £38.
Calculation is the difference between EDF’s Energy’s Blue + Price Promise Plan (February 2015) at £1,192 a year and npowers Online Price Fix June 2014 at £1,184 a year. Difference is £8. Bill sizes are based on a medium user customer using 3,300 kWh of electricity and 16,500 kWh of gas paying by direct debit with bill sizes averaged across all regions.
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