moneysupermarket.com: Powergen's new fixed rate product

Commenting on Powergen’s new fixed rate product, Scott Byrom, utilities expert at price comparison website, moneysupermarket.com, said: “Powergen’s new fixed rate product is now the cheapest capped deal on the market, and there is no penalty charge to exit it.

“Capped deals are worth considering if you want stability and consistency with your energy bills and if you feel energy prices will increase. Despite cuts to energy prices earlier this year, I would be surprised if suppliers introduced a hike anytime soon. In fact, they should continue to drop as providers continue to battle for market share and the fall in wholesale prices are passed on to the customer. Therefore, in this environment, fixed rate products may not benefit the consumer at all.

“Most consumers just want cheaper energy bills and based on price at the moment, customers should look to online tariffs. For a household on average energy consumption, British Gas’s Click Energy 3 online tariff could save you £103.27 a year compared with Powergen’s fixed rate deal.”