E.ON Fires Latest Salvo in Online Price War
on: August 21, 2009, 7:01 am
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.
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."
more information please contact: Jo Ganly 0207 802
2915 / firstname.lastname@example.org http://www.uswitch.com
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.