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British Gas and E.ON reduce energy tariffs

As energy prices continue to fluctuate in the UK, today saw British Gas and E.ON reduce their dual tariffs to under £1000 a year. As soon as the British Gas Web Saver 4 tariff was released, E.ON introduced its own FixOnline 3 which is £10 cheaper at £984 a year.

The E.ON tariff also enables customers to fix their prices until 1 December 2010 which on the surface seems very attractive but is there a reason for this?

Many homeowners in the UK may well be wary of such long-term price fixes as a great number were apparently caught out when energy prices peaked last year and significant numbers of UK households are still locked in at higher prices. It is difficult to know when to lock in and went to go with the market, especially when it looks as though energy prices have peaked yet the price of oil is starting to push ahead strongly.

There is also a need to consider that as we approach winter time more and more people are using more and more energy for heat as well as normal day-to-day usage. Will we see the UK government introduce further one-off payments to pensioners? Will the government attempt to curry favour with UK households as we approach the next election?

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