British Gas and EON spark energy price war

At last some good news from the energy markets - it looks like British Gas and Eon are going head to head in what looks like the first energy price war of 2009 - The good news for consumers is that this involes price reductions!

According to www.confused.com British Gas reduced its WebSaver 2 tariff last week and now EON is offering a brand new tariff to undercut British Gas called EON’s Fixed Online tariff.

Having just looked at the figures the saving on offer from EON isn’t exactly great; at just £1.24 but at least we are starting to see some reduction in the cost of energy tariffs.

With increases of up to around 40 per cent since summer 2008 it’s no wonder UK families are starting to feel the crunch when it comes to household bills and this is surely the start of some good news for summer 2009.

Head of Utilities at Confused.com, Gareth Kloet said: “Despite signalling good news for consumers it is still important to shop around for the most suitable deal in the market. The prices of EON’s Fixed Online tariff are fixed until June 2010, which represents a good option for consumers who expect energy prices to rise over the course of the next year od so. The exit fees for this tariff are £30 for dual fuel and £10 for electricity.

“British Gas’s WebSaver 2, in contrast, is a tracker tariff which will track a minimum of 6 per cent below British Gas standard prices. Consumers who opt for this tariff would therefore benefit greatly if British Gas standard energy prices continued to drop.

“These lastest table topping tariffs emphasise the widening gap between the best deals available and standard energy prices. In fact the average customer who switched energy provider or tariffs with Confused.com saved £252, which demonstrates the importance of shopping around.”