British Gas deal could save consumers £289 on energy bills
Households are now able to knock £289 off their annual energy bills, thanks to a new collective deal available via MoneySuperMarket.com.
The deal is powered by British Gas and is its cheapest deal in over four years, costing £805 a year on average. That’s £289 cheaper than the average big six standard monthly direct debit bill.
Stephen Murray, energy expert at MoneySuperMarket said: “The British Gas one year collective fixed tariff is currently the cheapest fixed rate deal available. Even existing British Gas or Sainsbury’s Energy customers can take advantage of the collective switch without being charged any exit fees from their current tariff.”
The deal is a fixed tariff, which confusingly doesn’t mean a set bill, but instead a set price for each unit of energy used (rather than a variable rate that could change at any time).
In July a report by the Competition & Markets Authority found that the ‘Big Six’ energy providers collectively overcharged consumers around £300 million a year, due to lack of competition in the market.
David Sheridan, founder of bill management service Onedox, says: “In the UK energy sector alone, 70% of consumers are overpaying by £160 a year because they are automatically moved on to more expensive tariffs once their initial contracts run out.”
Customers signing up for the MoneySuperMarket dual fuel offer should be aware there is a £30 early exit fee for people signing up to the deal who subsequently leave within a year.
Not to be confused with an early repayment charge (ERC). Exit fees are levied on top of ERCs, which are a method of clawing back lost interest on a loan repaid early. By contrast, exit fees are charged for the administrative work this entails. They are charged as flat fees, from £150 to £300. However, in January 2007, following mortgage lenders surreptitiously raising fees sometimes by fivefold, the Financial Services Authority (FSA) intervened and most mortgage lenders removed exit fees from new mortgages. If you paid exit fees on your mortgage before January 2007, you may be able to claim them back.