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Price war breaks out in UK energy market

28th May 2015 Print

Energy switchers could benefit from an all-out price war as suppliers E.ON and GB Energy look to tempt in new customers.

MoneySuperMarket’s exclusive collective switch tariff, E.ON MSM Fixed 1 Collective May 2015, powered by E.ON, is the nation’s cheapest fixed rate energy tariff, and the cheapest overall deal in eight of the UK’s 14 energy regions. GB’s Premium Energy Saver, which is a variable rate deal, is cheapest in the other six energy regions.

MoneySuperMarket’s collective switch offers an average bill of £876.86. The tariff also comes with the added benefit of no exit fees – meaning customers could switch again if prices fall - and is the cheapest deal across the majority of the UK’s energy regions – Eastern, East Midlands, London, Midlands, South East, Southern, South Wales and South West.

For those who aren’t looking for the security a fixed rate tariff provides against fluctuations in energy prices, GB Energy’s tariff comes with an average annual bill of £867 and no exit fees; this deal is cheapest in Manweb, Northern, Norweb, Scottish Hydro, Scottish Power and Yorkshire regions. However, this is a variable rate deal in which prices could change at any time.

In addition to the E.ON deal, MoneySuperMarket has also secured an exclusive fixed two-year collective switch tariff with Green Star Energy. Now the cheapest two year deal on the market, those switching will benefit from average bills of £977.

Both of the collective switch tariffs from MoneySuperMarket will be available until Monday, 15th June, so households with fixed tariffs that have recently ended, or are ending soon should act quickly to avoid missing out, and being automatically moved onto higher cost standard tariffs from their current suppliers.

Stephen Murray, energy expert at MoneySuperMarket said: “It’s great to see energy suppliers offering cheaper energy tariffs. But what people have to remember is that these deals have to be switched to, if you aren’t doing anything about your energy and you’re sat on a supplier’s standard tariff you’re always going to be paying more than you need for your energy.

“Whilst GB Energy’s tariff is the cheapest deal on average, it is a variable deal. This means should there be a rise in prices in the future, customers on this tariff would be hit with higher bills if they don’t switch to a better deal straight away. Our collective switch tariff through E.ON however, is the cheapest fixed rate deal on the market which provides security for one year from the start of supply that the cost of your energy won’t rise even if there are price increases seen in the market. 

“For those on a standard variable tariff with a Big Six supplier, you would need to wait for an average price fall of around 24 per cent to match the savings that could be made by switching to our one-year fixed deal. It is important not to wait, so take the power to save energy into your own hands and join our collective switch to see how much you could save.”

Those who have never switched and are currently on a standard tariff paying via monthly direct debit with one of the Big Six energy suppliers stand to save up to £278 by making the switch to the E.ON MSM Fixed 1 Collective May 2015. Furthermore, there’s no exit fees meaning bill payers have peace of mind that they won’t be penalised for switching to a cheaper tariff should one become available.