E.ON brings out cheapest ‘big six’ fixed priced plan

After a busy couple of weeks for price hike announcements, E.ON has brought out a new fixed price plan, designed to help budget conscious households protect themselves from rising prices.

The new plan - E.ON FixOnline 9 - comes in at £1,041 a year, making it the cheapest fixed plan available from any of the big six suppliers. Prices are fixed until 1st March, 2012 giving customers a 16 month price guarantee.

The popularity of fixed price tariffs is likely to grow, with three of the big six suppliers having already announced pre-Christmas price hikes. However, for those who are happy to look outside of the major suppliers, there are other plans that also offer a competitive alternative. The cheapest fixed price plan is OVO's New Energy Fixed plan which offers 12 months protection from the date of the plan going live. This comes in at £993 a year - £48 a year less than the E.ON plan at £1,041 a year. However, the protection on the OVO plan lasts 12 months against E.ON's 16 months.

Emma Bush, energy expert at uSwitch.com, says: "With energy suppliers serving customers up with an inflation-busting pre-Christmas price hike, many households will be tempted to sign up to a fixed price energy plan to protect their budgets over the months ahead. For those who are worried about the impact a potential price hike could have on their household finances this could be a good move, offering greater certainty and peace of mind for some time ahead.

"However, this peace of mind can come at a premium with fixed price plans averaging out at £104 or 11% more than the average online plan, as well as carrying early exit penalties. As ever, the key thing for consumers is to compare the different plans carefully before signing up and to understand what protection you are getting and for how long."