British Gas has launched a new Fix and Fall energy deal – but it costs around 20% more than the fixed-price energy deals its rivals are offering.
The energy giant says that it has launched the new long-term fixed-price tariff at no extra cost for existing customers who want to guard against future price rises.
However, our research shows that customers are still likely to be better off if they compare gas and electricity suppliers to find a better deal.
Best fixed energy tariffs
Which? Switch has compared energy deals and found alternatives that are likely to offer the average customer a better deal now that British Gas has raised its energy prices by 6%.
First Utility’s iSave Fixed v4, for example, is fixed for the same period as the British Gas offer, until 31 March 2014. However, the British Gas deal is likely to cost the average home around £1,309 a year but the First Utility tariff would come in at £1,087.
Furthermore, if customers did want to cancel then the British Gas cancellation fee is £10 more expensive.
Another attractive offer from a smaller energy firm is the Ovo New Energy tariff, which is fixed for 12 months from the start date and costs around £1,088 a year.
No cancellation fee on energy switching
Which? Switch also searched for the best fixed energy deal with no cancellation fee. This is the Eon Age UK Energy Fixed 1 Year (Online) deal which ends 12 months from the start and would work out at £1,148.24.
British Gas is not the first energy supplier to raise its prices. Scottish and Southern Energy (SSE) led the way with a 9% rise that is effective from Monday, and other suppliers may follow.
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