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British Gas undercut by rival

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by Kay Mitchell

Scottish and Southern Energy (SSE) has become the cheapest energy provider after it made changes to its Price Fix 2008 tariff.

The average consumer will pay £742 over the 12 month period on the SSE tariff. The reduction is the latest in goings-on between SSE and British Gas. In early 2007, British Gas declared it would become the cheapest supplier, changing its online Click Energy tariff to undercut its competitors.

British Gas was the cheapest until the end of last month, when the annual bill for an average British Gas Click Energy user was £755. SSE then introduced Price Fix 2008, also an online tariff, at £751. British Gas reacted and reduced prices to £748 and then again to £748.

The prices mentioned above relate to online tariffs, customers have to apply on the internet. Compared with standard tariffs, the SSE price is cheaper by between £82 and £122 per year.
The price comparison site, TheEnergyShop.com, commented that this is good news for customers. Scottish and Southern Energy have only just started competing in the market for internet-only tariffs and it’s great to see them really start in competition with other energy suppliers.

A spokesperson for price comparison site, moneysupermarket.com, remarked that a battle is commencing. Scottish and Southern has again taken action to challenge British Gas and has provided an even better deal with its Price Fix 2008 tariff.

However, British Gas is determined to have the lowest prices so it will be sure to respond with a cheaper tariff, again re-pricing Click Energy.

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News posted: October 10, 2007

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