Online energy bills fall below £1,000

There is good news for householders as the average online household energy bill falls below £1,000 for the first time this year.

ScottishPower is the latest supplier to join in an online energy price war that has seen prices tumble. Its new plan costs £975 a year, making it the cheapest of the big six suppliers and only £8 more expensive than First:Utility - the cheapest supplier in the market.

As a result, the average online energy plan now costs £988 a year - £251 cheaper than the average standard plan. The move comes at a time when suppliers are under pressure to cut their prices again this year in response to lower wholesale prices.

Will Marples, energy expert at uSwitch.com, says: "Consumers who are sitting back and waiting for across the board price cuts are missing a trick. Suppliers are focusing their price cuts on online energy plans - this is where all the action is taking place and where consumers should be looking if they want better value and lower energy prices.

"The average online energy plan now costs less than £1,000 for the first time this year, which is great news for consumers especially as we head into the winter months. Consumers also have more choice - there are some very competitive smaller suppliers, who are giving the big six a good run for their money. This includes First:Utility, which is the cheapest provider in the market. The message to consumers is clear - if you want to cut the cost of your energy and enjoy the cheapest prices in the market you have to move to an online energy plan."