E.ON offer remedy for price rise fears

With recent talk of energy prices potentially going up again, today's launch of a new fixed price plan by E.ON is great news for consumers looking for peace of mind, says uSwitch.com, the independent price comparison and switching service.

Thomas Lyon, energy expert at uSwitch.com, says: "With all the recent noise about energy prices going up and two suppliers having already hinted rises are in the pipeline, this new fixed price plan from E.ON could be a lifeline especially for those who are worried about their household budget.

"As well as offering security, this plan is part of E.ON and Tesco's consumer-friendly partnership that will help cash strapped households to meet the cost of their energy bills. As well as being able to collect points for their energy, Tesco customers will be able use their vouchers to pay their bills. For every £10 worth of Tesco Clubcard vouchers customers on the scheme can clear £15 off their energy bill - this means that they will get far greater value by using the vouchers to pay for their energy than for buying groceries. In this case every little really does help.

"But, fixing prices does come at a premium. With an average annual bill size of £1,126 E.ON's Fixed Price 5 is £171 a year more expensive than the cheapest plan on the market. It's not even the cheapest fixed or capped plan, but it is cheaper than the average standard plan, offers fixed prices until 2013 and has the bonus of clubcard points.

""Fixed plans are definitely right for some, but they do carry a premium. Online energy plans consistently offer the lowest prices, coming in at around £200 a year cheaper than standard tariffs. An online plan could be a good option for those who want to enjoy low prices today while having the flexibility to move onto a fixed price plan in the future if it looks like prices are going to go up."

For more information, visit uSwitch.com.