Scottish and Southern put the heat on British Gas over prices

Scottish and Southern Energy has launched a new online energy plan, which is now the cheapest in the market after undercutting closest rivals British Gas by £5.71.

The two providers have been engaged in minor price skirmishes since the end of September, snipping pounds off their online prices in a series of bill busting moves.

Tim Wolfenden, Head of Home Services at uSwitch.com, says: “Scottish and Southern Energy and British Gas have had their horns locked over prices for the last fortnight while they’ve danced around each other snipping valuable pounds off here and there. But, with today’s move, it looks like Scottish and Southern Energy is trying to strong arm British Gas out of the top slot and off the dance floor altogether.

“The new Scottish and Southern Energy plan, Price Fix 2008, offers consumers the best of both worlds – a cheaper online plan coupled with a fixed price until end of November 2008 – from a supplier that consistently provides good customer service. With current uncertainty over energy prices this deal would be right for those who are worried about catching a cold if winter prices go up. However, as you aren’t tied in to the plan, if prices do take a tumble then you are free to switch again to a better deal. Although classed as an online plan, it only requires you to go online to sign up to it. The day-to-day management of your energy account can be done offline if you prefer, making this plan even more attractive to those not quite so comfortable in the online world.

“So far other providers have remained on the sidelines but, if British Gas responds in kind and suppliers think they stand a good chance of pushing the giant back down the best buy tables, this minor skirmish could escalate into a full-scale online price war.

“The upshot is that consumers will be offered even better value on online energy plans. The downside is that the difference between the price an online customer will pay, compared with what a standard customer will pay, will be stretched even further. The writing on the wall for consumers couldn’t be any clearer – to get the best value from any energy supplier you must be prepared to ditch their standard tariffs and sign up online.”