Powergen launches ‘Fixed Price Until 2009’

Powergen has launched its first ever fixed price energy product, which will allow both new and existing customers to fix their energy prices at Powergen's current standard prices until 1 January 2009.

Powergen, which is part of E.ON, has launched the product in response to a recent survey which found that although over a third (35%) of consumers would fix their energy prices to avoid future price fluctuations, over half (57%) don't want to pay a premium for doing so.

Graham Bartlett, Managing Director of Powergen Retail, said: "We're always keen to understand what people really want so we can deliver the products that best meet their needs.

"Fixed Price Until 2009 offers consumers the opportunity to fix the amount they pay at today's standard prices with no tie-ins or exit fees if they change their minds. This is simply a win-win product for people who want complete reassurance with absolutely no hassle."

With Fixed Price Until 2009, customers can:

Benefit from discounts of up to 9% for taking electricity and gas and paying monthly by Direct Debit;

Get 1 Tesco Clubcard Point for every £1 they spend on electricity and gas;

Manage their energy account online and receive paperless bills;

Move home and still take the product with them.

Around half a million Powergen customers have taken advantage of Powergen's price reassurance offers to date.

Karen Darby, founder of SimplySwitch.com, the price comparison and switching service, comments: “If householders are concerned about their energy bills rising, fixed tariffs can offer peace of mind. However, thanks to the fierce competition within the energy sector, there are better options available. If customers really wish to protect themselves from future price rises, several providers offer capped (rather than fixed) deals which protect customers from rising costs but will also pass on savings if prices fall.

“When considering a ‘fixed’ or ‘capped’ tariff, customers should always bear in mind that cheaper energy deals are available. Most suppliers now offer online tariffs that are up to £200 per year cheaper than their standard rates. While they offer no protection against rising costs, energy prices would have to rise by up to 25% before a fixed deal became the cheapest option.

"Consumers need to be proactive and seek out the best deal available. There are huge price differences between the various tariffs available and it’s up to the customer to find out how much they could save by switching."