Utility price war 'has not translated into consumer savings'
Published On 10 October 2007
A consumer website has calculated that the recent price war between utility suppliers has not translated into significant savings for some customers.Recently, British Gas said that it was now the cheapest utility supplier, after it introduced its new online Click Energy 4 tariff.
However, uSwitch found that a typical customer opting for this over a Scottish and Southern Energy rate would save just 32p per year.
"Scottish and Southern Energy and British Gas have had their horns locked over prices for the last fortnight," explained Tim Wolfenden, head of home services at uSwitch.com.
"Yesterday's move by Scottish and Southern Energy looked like a real attempt to shunt British Gas off the top slot, but British Gas has managed to cling on by 32p."
"While any word on prices coming down is good news for consumers, the fly in the ointment is that suppliers are limiting their price spats to their online plans. Only one in eight households are on an online energy plan, which means that the vast majority of people in this country have not benefited from most of this year's price cuts."
Mr Wolfenden added that British Gas had a poorer record on customer satisfaction, which meant switch for a 32p saving might not be worthwhile.
