Last chance to pick up a cheap energy plan warns uSwitch.com
Time is running out for households to snap up a competitive online energy plan with npower pulling its cheapest deal, Sign Online 19, this morning. As a result, the average price of the big six suppliers' most competitive plans rises to above £950 a year.
For customers looking for a good deal with one of the big six, E.ON now offers the most competitive online plan. But consumers are being warned that this could be pulled off the market very soon. Online plans will still be cheaper than standard plans, but the difference between the two has shrunk to £239 from around £300 just a few months ago.
The good news for consumers however is that new contender, First:Utility, has just launched iSave V5, a competitve online plan for anyone willing to look beyond the big six. At £883, the plan comes in £73 cheaper a year than the average big six online plan, and £11 cheaper than E.ON's - currently the cheapest of the main suppliers.
Tom Lyon, energy expert at uSwitch.com, says: "This is a three minute warning for consumers looking to secure a cheap online deal. Online plans are always competitive, but with average prices falling below £1,000 in September last year, they have represented particularly good value over the last 13 months. However, because they are so keenly priced they are also the first to reflect any volatility in the market, which is why we have started to see online prices creeping up.
"The good news for consumers is that online plans still offer a £239 saving on standard prices, but with E.ON likely to follow suit in pulling its cheapest online plan, online prices are likely to continue rising.
"The biggest question on everyone's lips is what this upward trend in the online market means for general household energy prices. Ofgem's latest Quarterly Market Report suggested that suppliers' margins will be squeezed by Spring 2011, which could herald a price increase for households. This price increase is not a done deal, but considering today's news consumers should take the warning on board. With winter on its way now is the time to be snapping up one of these deals.