Cheapest annual fuel deal tops £1,000 - Gas and electricity - News - Moneyfacts

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Cheapest annual fuel deal tops £1,000

Cheapest annual fuel deal tops £1,000

Category: Gas and electricity

Updated: 05/10/2011
First Published: 05/10/2011

MONEYFACTS ARCHIVE
This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.

The cheapest annual dual fuel bill in the UK has risen above £1,000 for the first time ever.

The unwelcome landmark was broken yesterday after ScottishPower pulled the plug on its £990 internet tariff that was previously the best in the residential energy market.

Taking its place as the lowest average dual fuel bill is now EDF's Energy Discount Plan v5 at £1,024 per year, representing a typical saving of £276.

Fuel bills have spiked in recent months as all of the UK 's Big Six energy firms have announced price increases for residential energy customers.

The increases have been blamed on higher wholesale prices and infrastructure costs, but consumer groups have hit out at the trend which will result in most people seeing a double-digit percentage rise in their gas and electricity costs over the next year.

Reflecting on the average price crashing through the £1,000 barrier, Mark Todd, director of energyhelpline.com, said the figures illustrated in stark terms how bills are reaching historic levels and he warned that people who haven't yet switched should act fast.

"Tariffs aren't likely to get any cheaper as winter sets in so consumers should sign up to a fixed-term deal or a cheap internet tariff now if they want to save on your bills this winter."

Mr Todd also pointed to the upward pressure on fixed rate prices adding: "In July, households could get a four year fix for £1,050 a year; now you can only get a one year fix for that price.

"The cheapest really long fixed price is currently £1,214 a year and this is only for three years. You can't actually get a four-year fix any more.

"However, it's important to point out that typical savings are still close to £300 a year, and switching energy tariffs continues to be one of the quickest and easiest ways to save money."

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Disclaimer: Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time.

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