Eon is today launching a new online gas and electricity tariff that it guarantees will remain at least 2% cheaper than its standard tariff.
Save Online 8 is – as the name suggests – the eighth version of the Save Online tariff. It is not a fixed-price deal but offers a guaranteed 2% discount on its standard tariff. This is after a 6% discount for paying by monthly direct debit and a further 2% if you take both gas and electricity on this tariff.
Which? energy expert Sylvia Baron says: ‘Following the recent price rises from Scottish Power, we are expecting most if not all energy suppliers to follow by raising their prices before the winter.
‘So be aware that by switching to Eon Save Online 8 your bills may also go up if and when prices rise, and that you are tied in for 12 months, unless you pay a cancellation fee.’
As Save Online 8 is an online energy tariff, you will have to manage your account using the internet. It is available for dual fuel or electricity only and the only mode of payment accepted is fixed monthly direct debit.
While it guarantees to be at least 2% cheaper than Eon’s standard tariff, the previous version of Eon Save Online used to be 6% below the standard tariff.
Compared to other tariffs available on the market today, it is on the cheap side for an average bill, although it is not protected from any future price rises.
You can see how you current energy deal compares to the latest tariffs using our comparison service Which? Switch.
Beware standard tariffs
This is the first deal from Eon with a fixed term for all customers. However, after the 12 months customers will be switched to a similar plan or to Eon EnergyPlan, which is Eon’s standard tariff.
Sylvia says: ‘It’s important you make a note of when the 12 months will expire as if you ended up being moved onto a standard tariff, you could be faced with much higher bills as standard rates are expensive in comparison to cheap online deals.’
Traditionally only fixed-price energy deals charged an exit fee if the customer wanted to switch away from the tariff early, but recently more and more gas and electricity companies have have started adding exit fees to their online tariffs,
Eon Saver Online 8 has a £30 cancellation fee for dual fuel and £10 for single electricity if you leave before the end of the 12 months.
There’s a plethora of tariffs available, and several different types. We explain the pros and cons of fixed-rate, capped, prepayment, economy 7 tariffs and more in understanding energy tariffs.
You may want to consider more than just price when it comes to selecting an energy supplier. To see how the big names compare on areas including value for money, customer service and bills, have a look at our energy supplier satisfaction survey.
Lower your gas and electricity bills
You can compare energy prices and switch to a new gas and electricity supplier on Which? Switch. People who switched with us between 1 October and 31 December 2013 are predicted to save an average of £234 a year on their bills.
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