SSE launches cheapest energy plan on the market
Britain's big six energy suppliers are making a comeback in the best buy tables, according to uSwitch.com.
The fight back comes as SSE launches a new energy deal which is now the cheapest on the market. The move brings to an end small suppliers' domination of the best buy tables, and signals a renewed intention by some of the big six to offer consumers attractive deals.
The new SSE plan - Discount Energy Bonus April 2015 - initially costs £1,134 a year, making it £16 a year cheaper than First Utility's iSave v14 at £1,150 a year. It is £48 a year cheaper than the next cheapest big six plan, EDF Energy's Blue + Price Promise, costing £1,182 a year. However, the latter is a fixed price plan which offers protection from price hikes until the end of June 2014. The SSE plan is variable, although it does offer a hefty 11% discount against SSE's standard prices until April 2014. The discount then reduces to 2%, but from this point there is no cancellation fee should the customer wish to leave.
Tom Lyon, energy expert at uSwitch.com, says: "This new plan signals a welcome return by SSE to the best buy tables. The fact that it has chosen to come straight in with the cheapest plan on the market suggests that it means business and is ready to get back into the competitive fray after sitting on the sidelines for a long time. However, consumers need to be aware that the 11% discount is only available until April 2014 - it then reduces to 2%. Fortunately though, there is no cancellation charge after this date, so you're not locked in should you choose to move away.
"Up until last year, consumers saw SSE as Britain's best supplier, so this competitive new tariff could be the start of a concerted effort to win back a few hearts and minds. Whatever the reasons behind it, it's good news to see a popular supplier making a comeback. It's also good news for consumers as it means that they now have a better choice of competitive tariffs from suppliers both big and small alike. This is what competition is all about. With the average household energy bill now hitting £1,352 a year and winter fuel bills on their way, I would urge consumers to take advantage and reduce their bills by shopping around today for a far more competitive and cost-effective deal."