Whilst customers are content to languish on standard tariffs and not seek out better deals, energy providers will have no incentive to compete with each other and therefore initiate change. This is yet another example of the energy providers ploughing all their best deals into the online market in a bid to catch the savvy shopper.
Cardiff, UK (PRWEB) March 26, 2010
Gareth Kloet, head of energy prices at Confused.com, comments on EDF Energy's recent introduction of two new tariffs:
"In response to recent market changes, EDF Energy's new tariffs will appeal to both the best buy shopper and those looking for the security of fixed rate deals.
"Its new Online Saver v6 tariff is a best buy in 8 out of the 14 regions and offers a guaranteed 2% discount off EDF Energy's standard rates until June 2011. As it is a tracker tariff, if EDF do follow the example already set by British Gas and cut their standard rates in the future, it will become even cheaper. Although this tariff has an exit fee of £25 per fuel (£50 for a combined fuel switch), it will be appealing to many customers looking for competitive electricity and gas prices.
"In contrast to Online Saver, its new Fixed Price 2015 tariff offers customers fixed rates until 30th June 2015. Whilst not a winner in terms of price, it's the longest guaranteed period currently on offer in the market place and will therefore appeal to those that believe energy prices will rise in the longer term. However, this tariff could prove to be a gamble as there is dissention amongst industry experts as to whether prices are destined to rise or fall in the short to medium term.
"On the downside, it has expensive exit penalties in the early years (£100 in yr1, £75 in yr2 and £50 in yr3 per fuel). The good news for the cautious, who wish to opt for this in a bid to make long term budgeting easier, is that there are no cancellation penalties for leaving after the initial three years so it's not necessarily as restrictive as it seems on the surface.
"With EDF Energy putting another good proposition online, there's no doubt that this is the area to watch for customers looking to get the best deal on the market. Whilst British Gas have blazed a trail with lowering their standard prices, there is no guarantee that other providers are going to follow suit.
"Whilst customers are content to languish on standard tariffs and not seek out better deals, energy providers will have no incentive to compete with each other and therefore initiate change. This is yet another example of the energy providers ploughing all their best deals into the online market in a bid to catch the savvy shopper."
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Notes to editors
Confused.com is one of the UK's biggest and most popular price comparison services. Launched in 2002, it generates over one million quotes per month. It has expanded its range of comparison products over the last couple of years to include home insurance, travel insurance, pet insurance, van insurance, motorbike insurance, breakdown cover and energy, as well as financial services products including credit cards, loans, mortgages and life insurance.
Confused.com has all of the 'big six' energy providers on its panel, customers can save £250* on their annual energy bill by switching with Confused.com
Confused.com is not a supplier, insurance company or broker. It provides a free, objective and unbiased comparison service. By using cutting-edge technology, it has developed a series of intelligent web-based solutions that evaluate a number of risk factors to help customers with their decision-making, subsequently finding them great deals on a wide-range of insurance products, financial services, utilities and more. Confused.com's service is based on the most up-to-date information provided by UK suppliers and industry regulators.
Confused.com is owned by the Admiral Group plc. Admiral listed on the London Stock Exchange in September 2004. Confused.com is regulated by the FSA.
*Confused.com customers saved an average of £252.37 on their annual energy bill in 2008.