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Energy war 'hotting up' as E.ON launches new online energy plan

06 August 2009 / by Rachael Stiles

E.ON has launched a new online energy plan which has replaced its previous online tariff as the gas and electricity provider's cheapest online deal.

The provider promises that customers of the SaveOnline tariff will save £41 a year compared to the average online energy plan, and, at a typical £1,017 a year, they will save 17 per cent on E.ON's standard offline tariff prices.

The new SaveOnline tariff is only available to existing customers or new customers who are willing to pay by fixed direct debit each month and take out a dual fuel or electricity only plan.

Customers must also agree to manage their account entirely online, receiving paperless bills by email – an environmentally-friendly alternative to paper bills in the post.

Reacting to the new SaveOnline tariff from E.ON, comparison website has said that it is still not the cheapest on the market, with EDF beating it at £983 a year. But, the EDF deal is not available in all regions.

uSwitch's market analysis shows that British Gas has fallen into third place, amid speculation that it will retaliate with a competitive deal, while the new tariff from E.ON could help households coming to the end of fixed rate deals.

Will Marples, energy expert at, said "The online price war is hotting up and energy prices are coming down as a result. If consumers want to benefit they need to ditch their expensive standard plans and move to one of the new online energy plans," he said.

For those whose energy bills have been sheltered from price hikes by fixed or capped tariffs, Mr Marples said that the new E.ON tariff is "a real lifeline to those who were worried about where they were going to go next and who could see that moving back to a standard energy plan was going to cost them dear."

© Fair Investment Company Ltd