Energy companies are pulling some of their cheap deals from the market sparking fears more energy companies will follow supplier SSE in announcing price rises.
Scottish Power has withdrawn its cheapest fixed deal (Scottish Power Online Fixed Price January 2014), which used to cost a very competitive £1,052 a year, and had no exit fee attached.
EDF Energy meanwhile has also now completely withdrawn the Blue Price Promise tariff from the market. It was withdrawn from comparison websites two weeks ago due to limited availability, but has now also completely disappeared as a switching option from its website. It was an incredibly popular (and heavily marketed) tariff and the first we’ve seen offering to tell customers if prices were any cheaper elsewhere.
For the latest prices and tariffs, compare gas and electric using Which? Switch. You can also keep track of the latest price rises and advice on what to do using our energy price rises guide.
Price rise fears
Energy company SSE (which operates through brands including Atlantic, Southern Electric and Scottish Hydro) announced last month that it will be increasing its prices by an average of 9% this winter. In 2011, each of the ‘big six’ energy suppliers (British Gas, EDF Energy, Eon, Npower, SSE and Scottish Power) announced energy price rises during the run up to winter.
There are still some pretty good fixed deals out there, so if you want peace of mind, now is the time to fix. Look out for the few remaining fixed deals that don’t have cancellation charges and you’ll still be free to switch should prices come down.’
For more money-saving energy advice – including insider tips on getting the best deal – go straight to our essential energy cost-cutting tips.
Cheapest gas and electricity
The best dual fuel deal is now Sainsbury’s Energy Online Variable September 2013, at £1,070 a year for an average user. Sainsbury’s Energy is provided by British Gas. It is a variable tariff, so prices can go up as well as down.
The cheapest fixed deal on the market now is the New Energy Fixed from Ovo Energy at £1,088 a year. But it has a £30 per fuel cancellation fee should you want to leave before the end of the 12-month contract. The next best fixed deal is Scottish Power Online Fixed Price Energy March 2014 at £1,099 a year. It is fixed for a longer period of time and has no exit fee attached.
For electricity only, the cheapest fixed deal is the iFix tariff from newcomer iSupplyEnergy, at £416 a year for an average user. But it has a cancellation fee of £30 (excluding VAT) should you want to switch before the end of the 12-month contract.
Npower launches new Go Fix tariff
Npower is launching a new version of its Go Fix tariff, running until January 2014. But at £1,157 a year for an average dual-fuel user, it is £87 more expensive than the cheapest deal on the market.
Npower is also withdrawing the current Energy Online October 2013 product and launching one with the same name, which runs until January 2014. The October version was the cheapest on the market for single-fuel electricity.
Its new Energy Online January 2014 deal is not too bad: at £1,071 a year, it is only £1 more expensive than the cheapest dual-fuel deal on the market and guarantees its prices to be at least 3% cheaper than its standard variable tariff. But it does have an early exit fee of £30 per fuel.