Energy News

Price war: EDF now cheaper than British Gas

Wednesday 22 July, 2009

By Becca Talbot becca.talbot@consumerchoices.co.uk

EDF has undercut British Gas and taken the crown of UK’s cheapest energy supplier for average-sized households - but will British Gas hit back?

French energy giant EDF (www.edfenergy.com) has relaunched its Energy Online v5 deal, making it the UK’s cheapest energy supplier for average consumption households.

The tariff is now the cheapest online energy tariff in the UK, undercutting British Gas (www.britishgas.co.uk) by £35 a year, according to energy comparison service energylinx.

Will Marples, energy expert at uSwitch.com said: “The message from suppliers is now clear - if you want to cut the cost of your energy you have to go online. This is where competition is being played out and where consumers will feel the benefit of lowering wholesale prices.”

Online Energy v5 will cost the average household just £983 a year for both gas and electricity. This is £35 cheaper than WebSaver 3 from British Gas, according to uSwitch.com.

Online Energy v5, which is open to both existing and new EDF customers, is a variable price tariff which may be subject to price changes. EDF guarantees however, that customers will receive a discount of at least 2% off EDF’s standard tariff until the end of July 2010. The tariff has no early exit fees if you want to switch again.

The tariff is only available in 10 of the 14 distribution areas around the UK. In the remaining four areas British Gas WebSaver 3 is still the cheapest tariff for average users. The areas are London, South Wales, South West and the South East.

The move has come just days after “big six” rival Npower (www.npower.com) launched two new online tariffs – Sign Online 16 and Web 16. These tariffs are still the cheapest for “low” and “high” consumption households respectively.

Chris Eagle, commercial manager at EnergyChoices.co.uk said: “I’m sure consumers will now be expecting an online energy price war, but will British Gas bite back? Maybe we will see the launch of WebSaver 4.”

“Whatever happens,” continued Eagle, “one thing is certain – now is definitely the right time to compare energy prices and make sure you’re on the cheapest tariff for your usage. It may be worth holding fire when it comes to switching however, as another supplier may undercut EDF.”

Sign up to the EnergyChoices.co.uk RSS news feed to make sure you’re on top of all the latest price changes.