npower challenges British Gas as ‘cheapest supplier’

Cash strapped households have been given a summer bonus by suppliers as the online energy price war hots up, says uSwitch.com, the independent price comparison and switching service. ScottishPower and npower have both brought out new competitive online energy plans which have helped to bring the average online energy bill down to £1,047 a year. Online plans now offer consumers a saving of £192 on average compared with traditional standard plans.

The move also means that British Gas - which has positioned itself as the cheapest supplier in the market based on its highly competitive online energy plan - is now only £1 a year cheaper than npower. However, because this is averaged across the country, it is more important than ever for consumers to get comparisons based on their personal circumstances, such as where they live and annual usage, if they want to be on the cheapest plan.

Consumers who are worried about the cost of energy should look to follow some simple steps to cut their bills: move to dual fuel, pay by direct debit and sign up to an online plan. Households stuck on the most expensive standard plan in the market are now paying £344 a year more on average for their energy than those on the cheapest online plan - this is a simple saving for people to make.

Will Marples, energy expert at uSwitch.com, says: "This move serves to underline the fact that consumers must move to an online energy plan if they want to make a serious reduction to the cost of their energy. People who are sticking to traditional energy plans are paying through the nose - they are paying almost £200 a year more on average than they have to.

"Households only have to take three simple steps to lower energy bills: move to dual fuel, pay by direct debit and sign up to an online plan. If they ditch their expensive standard plans today and sign up to a competitive online plan they will be quids in."