19th January 2015
Comparison site Gocompare.com is saying that shrewd consumers should spurn the British Gas price cut arguing that standard tariff customers will be better off switching to new duel fuel fixed deals taking advantage of a price war.
Gocompare argues that with a faster switching initiative, customers could complete a switch to a cheaper best-buy fixed tariff before the British Gas reduction even comes into effect.
Jeremy Cryer, energy spokesperson at Gocompare.com, said: “While offering slightly more than E.on’s 3.5% reduction last week, the fact British Gas aren’t implementing the price cut with immediate effect means this isn’t a particularly generous offer. By the time British Gas hands over its 5% reduction on 27 February, standard tariff gas customers could have taken advantage of the industry’s new 17 day faster switching and secured a best-buy fixed tariff deal, potentially saving them hundreds of pounds.
“While the price reduction for existing British Gas customers is welcome, it only serves to highlight the gulf between the best deals available and the prices people pay on standard tariffs.”
The service says that as a result of the price cuts in recent months, the energy best-buy table is now entirely comprised of sub-£1,000 tariffs – the first time this has happened since mid-2012.
All of the top ten cheapest dual fuel tariffs, including the Extra Energy Fresh Fixed Price Jan 2016 v8, the cheapest fixed term tariff on the market, are available through Gocompare.com’s energy comparison service.
Top ten cheapest dual fuel tariffs
|Supplier||Tariff||Annual cost||Saving vs typical bill*||Early exit fees|
|Extra Energy||Fresh Fixed Price January 2016 v8||£918||£408||£25 per fuel|
|First Utility||iSave Fixed v44 March 2016||£919**||£407||£30 per fuel|
|Extra Energy||Clear Fixed Price March 2016 v4||£919||£407||£25 per fuel|
|Ovo||Better Energy Fixed (Online)||£920***||£406||£30 per fuel|
|E.on||Fixed 1 Year v14||£923****||£393||£5 per fuel|
|Extra Energy||Bright Fixed Price Jan 2016 v8||£925||£401||£25 per fuel|
|Green Star Energy||Rate Saver 12 Month Fixed 1501 Paperless||£932||£394||£30 per fuel|
|Cooperative Energy||Fair & Square March 2016 v2||£944||£382||£30 per fuel|
|Green Star Energy||Rate Saver 12 Month Fixed 1501 Paper Bill||£947||£379||£30 per fuel|
|npower||Fixed Energy Online April 2016||£963||£363||£25 per fuel|
Based on dual fuel, payment by monthly direct debit, averaged across all UK regions and for households with an annual energy usage of 13,500kWh gas and 3,200kWh electricity (medium user). Correct as of 19/01/2015.
*Saving calculated against an average bill £1,326 as calculated by Ofgem November 2014.
**Assumes paperless billing – £5 per fuel more expensive if paper bills are selected.