‘Last Chance To Pick Up A Cheap Energy Plan’

With nPower withdrawing its cheapest energy deal, time is running out for households to benefit from the best online energy plans, uSwitch is warning.

Gas and electricity prices have started rising again, having falling for over a year previously. This has forced energy suppliers to withdraw some of their cheapest deals during recent months, just as we experience the chill of autumn and the impending winter.

The withdrawl of the cheap deal from nPower means that the average price of the big six suppliers’ most competitive plans rises to above £950 a year.

E.ON now offers the most competitive online energy plan, however consumers are being warned that this could be pulled off the market very soon.

Online energy plans still offer the best value, uSwitch is claiming, but the difference between the annual costs of an online plan compared to a standard deal has shrunk to £239, compared to £300 a few months ago.

First Utilty, a smaller independent energy provider is undercutting the big six with its iSave V5 plan.

At £883, the plan comes in £73 cheaper a year than the average big six online plan, and £11 cheaper than E.ON’s – currently the cheapest of the main suppliers.

We are likely to se further gas and electricity prices, says Tom Lyon, energy expert at uSwitch.com:

“The biggest question on everyone’s lips is what this upward trend in the online market means for general household energy prices. Ofgem’s latest Quarterly Market Report suggested that suppliers’ margins will be squeezed by Spring 2011, which could herald a price increase for households.”

“This price increase is not a done deal, but considering today’s news consumers should take the warning on board. With winter on its way now is the time to be snapping up one of these deals.”, Lyon advises.