British Gas cuts energy prices with launch of WebSaver 5

British Gas has launched its WebSaver 5 tariff, making it the cheapest gas provider. The launch was hailed by many in Britain describing the price cuts as making Christmas arrive early for Britons.

Update: May 2011

British Gas have now launched their WebSaver 12 energy plan. It keeps them in the number one position for online energy plans. You can see all the details on the British Gas website.

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Update February 10: British Gas have now launched their new Websaver 6 energy plan.

With the new tariff, households are expected to save an estimated £400 a year than the average customer on Scottish Power’s standard tariff. While OVO Energy is still offering the cheapest tariff, the WebSaver 5 is the cheapest in 13 out of 14 regions for low users.

WebSaver 5 replaces the old WebSaver 4 tariff scheme of British Gas. WebSaver 5 is an online energy tariff that guarantees to offer prices at least 6% lower than British Gas’ standard tariff until 28 February 2011.

Unlike WebSaver4, which allowed customers to use a number of payment methods, WebSaver5 is only available to people willing to pay by monthly direct. It is available as a dual fuel, gas-only or electricity tariff. Customers who leave the tariff before 30 June 2010 will face early termination fees of £30 per fuel.

It is really straightforward to switch energy supplier, and is probably easier than you think.

Chris Eagle, commercial manager at Energychoices.co.uk, commented, “British Gas has stormed back into the energy best-buy tables, and it will be interesting to see how other energy suppliers react. The cheapest tariff for you depends on both the area you live in and the amount of gas and electricity you use, so to find the best deal, it’s essential to do an accurate energy comparison.”

Scott Byrom, utilities expert at moneysupermarket.com, advices customers to make a switch to get a better deal and to be always on the look out for new prices announcements from energy suppliers.

“With this latest product launch from British Gas Christmas has come early for UK consumers. The British Gas EnergySmart initiative allows bill payers to monitor energy consumption within the home, and now coupled with today’s launch of WebSaver 5, an average bill payer can expect to pay £928 a year for their gas and electricity. Only new entrant to the UK energy market OVO Energy undercuts British Gas WebSaver 5, at £921 a year,” Byrom added.

Gareth Kloet, head of utilities at Confused.com also welcomed British Gas’ move to lower its gas price and said, “It’s good news that British Gas has finally provided a worthy price challenger to OVO with its new Websaver 5 tariff. Undercutting its previous offering, the now withdrawn Websaver 4, by 6.5%, this offer is open to new customers paying by direct debit, who are willing to manage their account online. This is yet another indicator that energy companies are passing on savings to customers, but only those willing to seek them out – there is no reward for apathy.”