Energy News

New fixed-rate energy deal from E.ON

Wednesday 25 May, 2011

By Martin Fagan - martin@consumerchoices.co.uk

New deal offers consumers fixed rate until July 2013, but at a 9% premium on E.ON's standard prices.

Consumers worried about the prospect of their energy bills rising in the coming months can fix their rate with a new deal from energy supplier, E.ON.

The energy company said the introduction of its Fixed Price 5 deal, which runs until 1 July 2013, means customers will be protected against rising energy prices for the next two winters and beyond.

In what E.ON claims is a unique feature, customers not only earn Tesco Clubcard points for money spent on energy, but can also exchange their Clubcard vouchers for online tokens to pay towards their energy bills.

This aspect of the deal makes Clubcard vouchers worth more than their face cash value, as for every £10 of Tesco Clubcard vouchers exchanged, E.ON adds 50%, so customers will see £15 deducted from their bill.

Although Fixed Price 5 deal offers an 8% discount for dual fuel customers who pay monthly by direct debit, it is not the cheapest deal from the supplier, as it carries a 9% premium on E.ON's standard prices.

“With all the recent noise about energy prices going up and two suppliers hinting that rises are in the pipeline, this new fixed price plan from E.ON could be a lifeline for those worried about their household budget,” said Thomas Lyon, energy expert at uSwitch.com.

“Fixed plans are definitely right for some, but they do carry a premium. E.ON's Fixed Price 5 is £171 a year more expensive than the cheapest plan on the market. It's not even the cheapest fixed or capped plan, but it is cheaper than the average standard plan,” he added.