British Gas hits back at Scottish and Southern Energy

British Gas has thwarted Scottish and Southern Energy’s bid to have the cheapest online energy plan in the market, by undercutting its rival by 32p.

The energy giant retaliated after Scottish and Southern Energy launched a new energy plan yesterday which was £5.71 cheaper than British Gas’ online deal. 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. Yesterday’s move by Scottish and Southern Energy looked like a real attempt to shunt British Gas off the top slot, but British Gas has managed to cling on by 32p.

“While any word on prices coming down is good news for consumers, the fly in the ointment is that suppliers are limiting their price spats to their online plans. Only 1 in 8 households are on an online energy plan, which means that the vast majority of people in this country have not benefitted from most of this year’s price cuts.

“For those consumers who are able to sign up to an online plan, 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. British Gas, with its poor track record in customer service, has undercut by 32p so now it just remains to be seen what price consumers will put on customer service.”